‘Severe blow to business’

Latest GDP figures show the economy has contracted.

While the Government cannot afford to waver from its deficit reduction programme, more steps need to be taken to boost the flagging economy.

That is the view of Gerry Jones, chairman of the Institute of Directors in the South West region.

Reacting to the latest GDP figures, which showed the economy contracted 0.7 per cent in the second quarter of 2012, he described the news as “a severe blow to business”.

He said: “The Eurozone countries show that we absolutely cannot afford to waver from the deficit reduction programme, but there are several steps the Government must take to boost the economy through supply-side reforms.

“New infrastructure projects financed by our low interest rates, proper relaxation of planning and employment red tape and action to lower energy costs for manufacturers would all show Britain means business.

“Too often, programmes are moving ahead at glacial speed. To help unlock corporate cash piles, Government needs to show decisive leadership and a real sense of purpose.”

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