We must cut cloth to maintain growth

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A BUSINESS expert says Hartlepool and the UK must live within its means to fight its way back to prosperity.

John Megson, the co-ordinator of the Hartlepool Business Awards, said it was too easy to forget how the world economy got itself into a mess in the first place.

It was the boom scenario which eventually led to going bust, leaving the world with massive debts.

Mr Megson said: “While there have been signs of the economy improving with over a million private sector jobs off-setting the reduced public sector reductions, nevertheless, it is essential that we continue, both domestically and in business, to live within our means.

“Spending our way out of recession will only result in the country becoming bankrupt and while the Coalition Government is finding it difficult to speed up moving out of the recession the alternative theories put forward by some would be economic suicide.”

Hartlepool wasn’t immune to the cutbacks and the effects on the local economy.

Mr Megson said the fact that councils were still having to cut budgets “inevitably impact on all of us”.

He highlighted some of the developments which had impacted on the town’s business scene.

Training company Amacus had gained new contracts, but steel giants Tata announced significant job reductions.

Mr Megson said that, while they were modest at Hartlepool, “one job lost means one family having difficulties until new jobs are found”.