The theory is simple, the public sector will lose nearly half million jobs, but those jobs will be replaced by a growing private sector. Those with small business insurance policies and running the very companies that the coalition government believe will help kick-start the recovery, are not so sure.
The chief executive officers of the UK’s largest blue-chip companies may have combined to write a letter to the government applauding them that tough action was needed and that they could take up the slack, but the small company organisations weren’t so sure. Small business insurance helps mitigate against many of the problems faced by the companies operating at the lower end of the food chain, but it won’t create jobs.
According to many business observers, the coalition government has gambled hugely with the country’s economy. If it falters (and much depends on a the global economy which although still breathing and showing some signs of life), then the end-result will be dramatically increased unemployment, less disposable income in people’s pockets and the dreaded double dip recession which could keep the country in the doldrums for years to come. Just take a look at Japan to see what could happen.
But at the moment the jury is out. Big business believes it can step up to the plate. The smaller boys are nervous that they’ll not weather the storm so easily (and no doubt currently checking their business insurance policies) and that the pressure won’t be relieved for some time to come. The dice has been thrown. Now it’s a waiting game.
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