North East Chamber of Commerce in Government plea

Jun 30 2010 by Christopher Knox, The Journal

THE head of a leading North-East business group has urged the Government to keep private business at the heart of its agenda if it is to avoid a 'double dip' recession as a result of its cuts in the public sector.

James Ramsbotham, chief executive of the North East Chamber of Commerce (NECC), made the comments while addressing members at the group’s annual meeting in Houghton-le-Spring yesterday.

He said the Chamber had feared a ‘four-phase’ recession and that the private sector could once again be forced to endure wide-sweeping business closures and redundancies.

He said that the banking crisis had led to last year’s recession in the private sector and fears that upcoming budgetary cuts in Government departments will lead to problems in private business and tip the business community back into recession.

Although the Chamber described last week’s Budget as “the least worst option” it did welcome a number of elements, including the decision to revoke planned National Insurance rises in part and a commitment to reduce corporation tax

Mr Ramsbotham said: “For many of our members the economic landscape will not feel much different 12 months on from the end of the recession.

“We have feared a four-phase recession for some time now, with the dreaded double dip a real threat. Anything that damages wealth generation, especially resulting from unintended consequences, must be avoided by the new coalition.

“The need to strengthen wealth generation has been the main plank of our lobbying activities and we would urge the Government continue to support business when it comes to the next round of cuts in October.”