The Confederation of British Industry (CBI) has warned chancellor Gordon Brown not to harm business startup services during planned job cuts in the public sector.
In a submission to the Treasury’s spending review, the CBI said that businesses must still be able to rely on vital government support if the number of civil servants is reduced.
The chancellor is expected to outline where job cuts will be made, following a pledge in this year’s Budget that a new public sector efficiency drive will see around 40,000 civil servants lose their jobs.
The CBI said that while it strongly backed the cost-cutting measures, it warned that widespread job losses in the Department of Trade and Industry (DTI) must not result in a worse service for entrepreneurs.
According to the business lobby group, small firms must not suffer from decreased support when attempting to start up, raise finance or trade overseas.
Digby Jones, director general of the CBI, said that he was right behind the idea of greater public sector efficiency.
“But that does not mean we will accept a decline in services critical to competitiveness. I would be amazed if there were not scope for savings at the DRI but I do not want its services emasculated,
“I cannot enlighten ministers on how many people should be doing these jobs. I don’t know how many officials it takes to change a light bulb, but I know when I need the light bulb changed and I expect it to work when I turn it on,” he said.
