Editor's comment: Regional gloom with some optimism

(Read Spending Review: Coalition cuts deep to stimulate recovery)

Regions outside London and the South-East will be disproportionately hit, especially Northern Ireland, where one-third of workers are employed by the public sector; Wales, Liverpool and Newcastle are also reliant on public sector jobs. Brokers in these areas will see demand drop for personal lines insurance and companies dependent on public sector business will see declining turnovers.

Despite the doom and gloom, there are signs for optimism. After seeing gross domestic product tick along healthily in the second and third quarters, there are some positive signs for the coming year. The business insolvency rate is low, corporation tax is set to fall and countries such as Germany are growing rapidly. In addition, the government is incentivising entrepeneurs, encouraging exports and investing in renewable energy supplies. There is also the potential for more outsourcing contracts.

One area in which the government has failed is in its reduction of flood defence spending. This an area that should not be cut: each pound spent on flood defences saves far more money in the future on rebuilding and insurance costs.

The economy is at a crossroads but we can avoid a double-dip recession provided there are no other shocks along the way. Whatever your politics, we all hope that the Chancellor is proved right with his strategy and that what many perceive as a gamble with the nation's finances pays off.

Alex Broad
It is with deep sadness this month that we have reported the passing of PB's publisher Alex Broad early in October. A tremendous leader, she has been an inspiration to me in my brief career and I will miss her greatly. My thoughts are with her family and husband.