Corporate banks 'welcome' spending review?

Corporate banking may be among the sectors to welcome yesterday's (October 20th) spending review, in which chancellor of the exchequer George Osborne set out measures to stimulate economic growth and job creation.

Andrew Goodwin, senior economic advisor to the Ernst and Young ITEM Club, claimed the parliament address "is likely to be welcomed by markets", suggesting staying within the forecast set at June's Emergency Budget "reinforces the fiscal credibility of the coalition government".

For corporate banking groups, this could mean renewed interest in UK goods and services, with commercial activity picking up as confidence grows among domestic and foreign enterprises.

The wealth management expert argues the report should help remove "uncertainty" that was preventing companies from investing in staff and equipment, saying this will support the nation's recovery.

In total, £81 billion is to be cut from public expenditure over the next four years, with a further £7 billion removed from welfare budgets, an addition to the £11 million announced four months ago.  ADNFCR-2318-ID-800134282-ADNFCR