Cuts make Doncaster 'vulnerable'

Doncaster's economy is continuing the "sluggish growth" it has experienced since the end of the recession and is looking vulnerable to Government austerity measures, according to the town's Chamber of Commerce.

Sales grew by one per cent during the last three months of the year, according to the Chamber's latest economic review and the percentage of companies under pressure from the high cost of raw materials has more than doubled to 53 per cent.

"In uncertain economic times, Doncaster is not ideally placed to witness a business-led recovery, said Chamber head of policy, Daniel Fell.

"While the labour market has demonstrated a fantastic degree of strength…a disproportionate number of jobs in Doncaster are in the public sector, leaving the area vulnerable to Government austerity measures that could see over a million workers in the public sector made redundant."

Mr Fell said that despite the Government's austerity measures, weak growth and an over dependence on the public sector, the Chamber strongly believes that the greatest threat to short to medium term economic stability comes from inflation.

"An immediate VAT increase was an incredible gamble to take with a fragile economy," said Mr Fell. "The Chamber has long argued that this risk was unnecessary and that the VAT rise should have been delayed by a year or so.

"Given that the UK has consistently reported budget deficits for 28 of the last 37 years, why is there a sudden and urgent need to eliminate the deficit completely, and within such a short time frame as four years?"

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