CBI sceptical of government cost cuts

The CBI has hit out at government plans to slash costs just over a week before the budget – describing them as ‘fudged and flawed’.

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Sir Digby Jones, director general of the CBI, was quoted in The Daily Telegraph as saying that there was ‘significant scepticism’ over government’s plans to reduce costs by £21.8bn a year by 2008, which were calculated after a report on Whitehall waste by Sir Peter Gershon.

Jones said the question marks over government’s ability to cut costs was well-founded given that local authorities had achieved only 5pc of the £6.75bn savings target set for 2000.

‘Eight months on this government’s efficiency drive appears to be big on claims but small on detail. Existing goals are being missed and business shouldn’t have to pay the price for this,’ Jones was reported as saying.

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