Richard Branson urges swift public spending cuts after election

Published on Tuesday 16 February 2010 21:59

VIRGIN boss Sir Richard Branson has called for public spending cuts to start this year.

The high-profile entrepreneur said the UK's huge borrowing was a "serious risk" to the economy and action could not be put off.

The comments will be welcomed by the Conservatives as they compete with Labour on what is a key election battleground.

Sir Richard said: "I believe the UK's record budget deficit does pose a serious risk to our recovery. It would be damaging if we lost the confidence of the markets through delayed action and saw interest rates go up steeply."

He added: "We are going to have to cut our spending, and I agree with the 20 leading economists who said we need to start this year. The next government, whatever party that is, must not put off those tough decisions to next year.

"These factors threaten to undermine the confidence of international and UK business, UK consumers and the global financial markets. That could cost jobs and reduce investment in Britain."