Per DM

Per DM

October 19, 2010 12:14 ET

"We Know the Spending Cuts Will be Harsh, However, Will it all be Top Down Slashing of Budgets or Will There be a Business Stimulus Package In There?" Asks Per DM Group

LONDON, UNITED KINGDOM--(Marketwire - Oct. 19, 2010) - The Chancellor is due to announce the depth and breadth of the spending cuts across all Government departments. Every political and economic pundit has had a stab at just what they may be. We have even seen strategic leaks of some of the expected "bad news" in order to soften us up. Businesses like Per DM one of the UK's leading outsource sales organisations are sitting tight waiting to see just how these cuts will affect the private business sector.

The two main planks of the Government's strategy to reduce the deficit are cutting budgets and increasing taxes. Clearly the increased tax burden will only impact on those who can afford it the most, i.e. the individual tax payer and business, while the reduction on public spending will affect those employed in the public sector and those businesses reliant on working with the Government departments. Whatever way we look at it the economic fallout for a great number of businesses and their employees will be catastrophic.

Next year cuts in spending will account for 57% of deficit reduction which means, increased tax revenue will be 43% of the reduction. Not an insubstantial sum. "Where does the Government expect to achieve this increase in tax if there is no incentive for business to achieve?" ask Per DM Group. Of course the Government says that we have new large industries such as computing and software, a booming internet culture and a growing mobile technology sector. And it is those sectors that they are looking to drive increased revenues and therefore increased tax payments.

Per DM believe that we have entered a period of dysfunctionality where government versus business will divide our economy and hinder recovery. There are no signals whatsoever coming from the coalition regarding business stimulation.

"Companies are being realistic", says Jesse Young CEO of Per DM "We know that there will not be any reduction in the Corporation Tax rate. We know that the banks will not be put under pressure to support businesses. We know that with the increase in University fees there will be less qualified graduates out there. But what we don't know is just what the Government intends to do to ensure that at the end of this we will still have a thriving private sector economy."

Per DM Contact Marketing Limited was established in August 2005 in response to the UK markets' need for a field sales organisation capable of delivering high quality results with consistency and reliability.

The company was formed by a group of former UK financial services executives and senior executives from the leading North American field sales agency and since 2005 we have continually recruited leading figures from the B2C and B2B business arena.

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