Delivering the outcomes of the Comprehensive Spending Review, the Chancellor, George Osborne declared that, “today is the day when Britain steps back from the brink, when we confront the bills from a decade of debt.” The Chancellor went on to unveil details of plans to shed billions of pounds from the national deficit including tough announcements expected to result in cuts of almost half a million public sector jobs by 2014-15, a rise in the state pension age to 66 by 2020 and the introduction of a new bank levy.

Full details of the new bank levy are to be unveiled later today and are expected to raise an additional £2.5bn a year for the Treasury by 2013. Osborne faces a tough task balancing ongoing public mistrust of the banks and the need to raise additional tax revenues whilst not damaging the UK’s attractiveness as a world financial centre, saying that "we neither want to let banks off making their fair contribution, nor do we want to drive them abroad".

The Federation of Small Businesses (FSB) welcomed the measures and urged the government to put into place a Small Business Programme for Growth saying that, “The small business community continues to have a vital part to play in driving a credible recovery and taking on new members of staff to help tackle unemployment, so it is vital the government puts a Small Business Programme for Growth into action immediately.”

Despite the severity of the cuts announced, Britain’s business leaders, entrepreneurs and the small business community have reacted positively to announcements in the spending review. Looking beyond the current hard times, there are reasons for optimism among the UK business community. The UK remains a great place to do business, where innovation is truly world-class and the green movement, supported by government sponsorship is strong and growing.

There was also vocal support for the announcement of 75,000 additional apprenticeships, although some including BBC Dragon Peter Jones want government to go further and invest in 'enterprise education' as entrepreneurs and small business take on responsibility for fuelling economic growth.

Innovation and growth can’t thrive in a risk-adverse vacuum, so when money is tight entrepreneurs make money, creating jobs, prosperity and wealth. Cost-saving technologies do well in the downturn, while those perceived as unnecessary are shelved. As spending gets tough, innovation takes off and productivity and performance grow.

Speaking to Business Weekly, Julie Meyer, founder of Entrepreneur Country, CEO of Ariadne Capital and BBC Online Dragon explained the importance of the cuts, “as any CEO of any size company knows, you can and must keep costs in line, but at the end of the day, you can't survive as a company unless you have a growth story. Countries are no different; it's just a different sized system. That's what entrepreneurs do - they build growth stories.”

There will be much public scrutiny of the spending cuts but for now business has welcomed the Chancellors strong austerity measures and his pledge to support UK businesses not just at home but beyond our shores as he seeks to, "attract significant overseas investment, in partnership with the UKTI".

As the nation readjusts its cost-base to the new reality, the entrepreneurs are hard at work building growth, creating jobs, and through that, channeling taxable corporate income into the Treasury – all the while building the reputation of British based companies around the world.

More articles from Entrepreneur Country:

• 78% of entrepreneurs tell Lord Sugar ‘you’re fired’
• The Wayne Rooney effect- Why downside protection does not make you money
• Online Dragon Julie Meyer advises fired 'Apprentice'
• By whose rules should we judge entrepreneurs?
• Why the world’s poorest people are its strongest market
• Industry survey predicts ‘other’ private equity houses will fall and further banking covenants will be breached
• Study finds that 92% of US two year olds have an online presence
• Latest M&A and VC deals from the last 7 days

Like this article and want to be part of Entrepreneur Country? Please click the relevant link below or leave a comment.

Linked In - http://linkd.in/ct1Rfy
Twitter - @Encountry
Email - This e-mail address is being protected from spambots. You need JavaScript enabled to view it