Reform 'will beat recession'

Published on Wednesday 15 December 2010 11:56

WIDESPREAD reform of the public sector is needed in order to overcome the recession, business leaders say.

Bosses at the Edinburgh Chamber of Commerce say small cuts to services will not be enough. In a policy update issued this week, the Chamber said: "The temptation is going to be strong for government at all levels to soften the blow by increasing 'revenue' - nudging charges and fees up here, unfreezing council tax there, frontloading business rates and so on. Then there are the easy targets - infrastructure projects and the economic development agencies.

"Such an approach would be wrong. Instead, the key to recovery lies in reforming public services so that spending reductions can be made while leaving room for business to grow."