The ICAEW wakes up and realises the public and private sector are connected

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Nicola Smith at the TUC noted a report in the Times yesterday (I usually ignore the Times - it's not worth the payment, unlike the FT) which referred to survey findings by the Institute of Chartered Accountants in England and Wales. These reported:

20 per cent of employers they surveyed reported that spending cuts have already affected their turnover and 45 per cent believe that turnover will face negative impacts from cuts over the next 12 months. As a result of these fears 47 per cent of those reporting turnover reductions have already reduced staff.

Apparently the Chief Executive of the ICAEW, Michael Izza, said:

What has been forgotten, though, is the extent to which the private sector is a supplier to the public sector. Whether it is services, materials or equipment firms of all sizes and from all sectors have had work either directly or indirectly from Government organisations…These relationships are either under threat or have already been terminated.

What has been forgotten? Is the man a fool? Did he genuinely think there was some mighty Venn diagram with the state sector in one circle and the private sector and the two never overlapped? What sort of fantasy did he live in?

Some of us have, of course, been aware of this for some time. It's a shame the micro-economically obsessed (as most accountants are) didn't open their eyes a little earlier when demanding the destruction of the state sector on which their well being depends, as they're now discovering.

If they want they can join me on 26 March at the mass rally in London against the cuts.