Private banks 'to feel budget cuts within next 2 years'

Private banks are likely to feel the effects of government austerity measures within the next two years, according to one expert.

Budget cuts have already affected many sectors, with industries such as construction suffering since the reductions announced in the June budget.

But the knock-on effects of this might soon start hitting private banks, as individuals have less personal means and the slowdown is felt in an increasingly wide section of the British economy.

Stephen Overell, associate director of The Work Foundation, says areas with a high proportion of public sector workers are likely to be the worst affected, with those where the private sector is underdeveloped doubly troubled.

In such regions, unemployment will be difficult to tackle, he suggests, indicating demand for private banking services could lessen as whole sections of the economy suffer ongoing financial difficulties.

The expert concludes: "[The cuts] are beginning to be felt but they'll start to be felt properly in the late autumn time after the comprehensive Spending Review in November." ADNFCR-2318-ID-800049181-ADNFCR