Survey by FRP Advisory shows private sector growth not strong enough to absorb public sector cuts

An overwhelming 83% of senior financial and legal professionals believe private sector growth over the next 2 years will not be enough to support the influx into the labour market caused by public sector spending cuts, according to a recent survey by FRP Advisory LLP, the restructuring, recovery and insolvency specialist.

The firm surveyed more than 100 senior managers and partners in July from banks, commercial lenders and law firms.Commenting on the results, Simon Glyn, partner at FRP Advisory, said: ''he experience of advisers is that clients are still wary of expanding too quickly and do not envisage significant levels of growth over the next couple of years. Forecast growth would have to be exceptionally high among privately-held businesses to absorb the 40% public sector cuts '' which equate to thousands of jobs, and that simply isn't the case.''