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UK businesses endorse Osborne's spending cuts

Leaders of 35 top UK companies writer a letter expressing their support for the deficit reduction pl

The leaders of 35 big UK companies have endorsed the government's plans for deep spending cuts.

In a letter to the Daily Telegraph, business figures including the heads of Marks and Spencer, GlaxoSmithKline and BT, say that there is no reason to believe that the cuts will undermine the recovery.

The letter said: "Addressing the debt problem in a decisive way will improve business and consumer confidence."

The Chancellor, George Osborne, will announce details of the comprehensive spending review this Wednesday.

While many of the signatories are Conservative supporters, others such as BT's Ian Livingston and Asda's Andy Bond are not.

It also said: "The private sector should be more than capable of generating additional jobs to replace those lost in the public sector."

There has been no evidence of this so far, with a report by PriceWaterhouseCooper last week suggesting that half a million jobs could be lost in the private sector.