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| Business group in Budget warning | Business group in Budget warning |
| (about 7 hours later) | |
| There should be "no sacred cows" when it comes to making spending cuts in the pre-Budget report, a national business body has warned. | There should be "no sacred cows" when it comes to making spending cuts in the pre-Budget report, a national business body has warned. |
| In its latest economic assessment, the British Chambers of Commerce (BCC) said reform of the public sector must be the "cornerstone of a credible plan". | In its latest economic assessment, the British Chambers of Commerce (BCC) said reform of the public sector must be the "cornerstone of a credible plan". |
| The public sector employs nearly six million people and accounts for nearly half of all government spending. | The public sector employs nearly six million people and accounts for nearly half of all government spending. |
| Alistair Darling will deliver his pre-Budget report on Wednesday. | Alistair Darling will deliver his pre-Budget report on Wednesday. |
| The chancellor will be expected to chart the road to economic recovery and give more details of how he plans to halve the deficit over four years. | The chancellor will be expected to chart the road to economic recovery and give more details of how he plans to halve the deficit over four years. |
| The pre-Budget report will be the last before a general election, which must take place by June 2010. | The pre-Budget report will be the last before a general election, which must take place by June 2010. |
| What we are saying is there cannot be any sector immune from those cuts BCC | What we are saying is there cannot be any sector immune from those cuts BCC |
| The BCC, which represents 100,000 small companies, said the public sector should not be seen as some sort of "sacred cow" as the government looks to reduce borrowing. | The BCC, which represents 100,000 small companies, said the public sector should not be seen as some sort of "sacred cow" as the government looks to reduce borrowing. |
| It said reforming the public sector, including pay and pensions, should be a crucial part of plans to reduce spending. | It said reforming the public sector, including pay and pensions, should be a crucial part of plans to reduce spending. |
| Director general David Frost said: "Public sector spending needs to be brought under control. What we are saying is there cannot be any sector immune from those cuts. | Director general David Frost said: "Public sector spending needs to be brought under control. What we are saying is there cannot be any sector immune from those cuts. |
| "We have health and education, about a third of public expenditure, and if we ringfence those and say they cannot be touched, what that means is other aspects of public expenditure will have to take a very significant cut and that could harm business." | "We have health and education, about a third of public expenditure, and if we ringfence those and say they cannot be touched, what that means is other aspects of public expenditure will have to take a very significant cut and that could harm business." |
| Liberal Democrat Treasury spokesman Vince Cable told BBC Radio 5 live he agreed. | |
| "You can't just ring-fence particular areas," Mr Cable added. | |
| "In the case of the health service, of course what people want to see is that front line services are protected. | |
| "But I think it's also true that the NHS could be delivered more efficiently, and that's I think a workmanlike approach that one has got to adopt. But there shouldn't be sacred cows in that sense." | |
| BBC business correspondent Joe Lynam said the growing gap between the benefits enjoyed by workers in the public and private sectors had been brought into sharp relief during the recession. | BBC business correspondent Joe Lynam said the growing gap between the benefits enjoyed by workers in the public and private sectors had been brought into sharp relief during the recession. |
| The BCC report also called for investment cuts to be halted and reversed as companies would find it tough to increase output once the recession ended and demand started rising. | The BCC report also called for investment cuts to be halted and reversed as companies would find it tough to increase output once the recession ended and demand started rising. |
| It also predicted unemployment would peak at the lower than forecast 2.7m and the economy would grow by 1% next year. | It also predicted unemployment would peak at the lower than forecast 2.7m and the economy would grow by 1% next year. |