Spending Cuts Will Damage British Industry, say UK ExportersBy Travelex Global Business Payments, PRNE
Sunday, October 10, 2010
LONDON, October 11, 2010 - The Government's austerity drive threatens British industry, according to
a survey of UK exporters. The Travelex Confidence Index, which slumped 7
points in September, found that 63% of UK exporters think spending cuts and
tax hikes will have a negative impact on British industry over the long-term.
Exporters join a band of British businesses warning against the
Coalition's raft of spending cuts and tax hikes. Company Directors expect the
fiscal squeeze to heavily impact on domestic demand and force job losses
across industry sectors.
David Sear, Global Managing Director at Travelex Global Business Payments
commented, "Spending cuts and tax hikes are likely to crimp economic activity
for the foreseeable future and suggest that the UK's impressive rate of
growth will not be sustained over the second half of 2010. This climate will
make it extremely difficult for exporters to continue driving the recovery."
Exporters and importers in the manufacturing sector fear that they will
be hit hard by the Coalition's fiscal squeeze, with over half (53%) saying
that fiscal tightening will harm British manufacturing. Tax hikes are
expected to hit the sector as domestic demand falls in the wake of fiscal
tightening and up to 2.6 million employed in the sector are also under threat
from public spending cuts.
Sear comments, "It's worrying to see confidence in the sector at such a
low. Our ultimate concern is the impact the UK fiscal squeeze and the global
slowdown will have on UK exporters over the long term."
The decline in importer and exporter confidence came despite the recently
upbeat figures from the Travelex Confidence Index, where a strong GDP figure
in the second quarter had helped to bolster faith in the economic recovery.
Notes to Editors
To read the latest report, click here:
(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field. Remove the
space if one exists.)
About Travelex Confidence Index
The Travelex Confidence Index (TCI), released monthly by Travelex Global
Business Payments, provides commentators with a key indicator on
international trade and economic conditions. Conducted by independent
research company TNS-RI, the Travelex Confidence Index tracks the views and
sentiments of the UK's SME importers and exporters across industry sectors
and UK regions. The TCI is the only piece of research available that
regularly tracks the UK's SME importers and exporters. Visit
Media enquiries Jessica Buttress Head of PR for Travelex Global Business Payments UK +44(0)208-415-4204 +44(0)77954-497129 Jessica.buttress@ travelex.com
Media enquiries: Jessica Buttress, Head of PR for Travelex Global Business Payments UK, +44(0)208-415-4204, +44(0)77954-497129, Jessica.buttress at travelex.com
Tags: London, October 11, Travelex Global Business Payments, United Kingdom