Small firms sound warning on spending

SMALL businesses have criticised the Government’s decision to keep spending on public services above the rate of inflation.

The Small Firms Association said no business could allow its costs to “spiral” at the rate the Government was planning to increase current spending by in 2008. SFA chairman Pat Crotty said it was vital that spending, which Finance Minister Brian Cowen said will grow by 8.2% next year, returns to more modest levels.

ISME, which also represents small businesses, said it welcomed the fact that spending was coming down from 12.5% this year but wanted a commitment the Government would get more efficiency from the public services.