Northern SMEs most affected by cuts


There’s bad news for small and medium-sized enterprises (SMEs) in the north of England, as this is said to be the area that will be worst hit by Whitehall spending cuts.

That is according to a report from think tank Centre for Cities, which noted that Blackburn, Hull and Liverpool are among the northern cities that will be particularly vulnerable to cuts.

SMEs in these areas are expected to feel a greater impact from residents and services who are affected by austerity measures and reduced spending power – this will in turn impact local businesses, the Guardian reports.

Alexandra Jones, chief executive of Centre for Cities, said: “Small and medium-sized businesses are the lifeblood of the UK’s economy but many have been particularly affected by the impact of the recession on their local economies.”

The think tank is therefore urging the government to devolve more power to local enterprise partnerships – the bodies involved in regeneration – in order to allow them to tailor adequate support to regional businesses and help them grow instead of fail.


Posted by the Secret Businessman