As we break into summer, a lot is concentrating our minds at GBN.
UK: Private sector already hit by public sector cost cutting
According to the accountancy firm Wilkins Kennedy, 50% more public sector suppliers have gone bankrupt in the first half of 2010 than did so in the same period last year – or 168 this year compared to 114 a year ago.
Companies in the health, social services, education and defence sectors which deal with services such as recruitment, outsourcing, construction or marketing services have already been hit both by spending cuts and delays in spending decisions. The results of the current spending review are due in October, with government departments having been asked to present proposals for cuts of up to 40% in their budgets.