Axe hovers over marketing budgets as Con-Lib talks continue

Government departments will be bracing themselves for cuts to their marketing budgets if the Conservatives agree a deal with the Liberal Democrats to form the next Government.

David Cameron and Nick Clegg
David Cameron and Nick Clegg

The Tories and Liberal Democrats have been locked in negotiations since Friday (7 May) after voters failed to give any party a majority of commons seats.

According to a report on Sky News today (10 May), the two have agreed the outline of a deal. The plans are due to put to MPs and the front bench teams of both parties by the end of the day.

Prior to the election, the Conservatives and Liberal Democrats both vowed to slash Government spending on advertising and marketing to 1997 levels in real terms.

Any deal between the two could pave the way for what the Tories have previously described as an “emergency budget” in a bid to tackle the estimated £163bn deficit.
The Conservative Party has vowed to make £6bn worth of spending cuts this year if it forms the next Government, which could include a reduction in marketing spending.   

The general election led to a hung parliament with the Conservative Party winning the most seats, 306, 20 short of the number needed to command a parliamentary majority.

If a deal is not done, Labour could seek its own agreement with the Liberal Democrats to govern.

Labour has vowed to cut departmental marketing budgets by 25% through efficiency savings and greater aggregation through the Central Office of Information.

Despite agreement on the need to cut Government spending on marketing budgets, the Tories and Liberal Democrats do no see eye to eye on how to tackle irresponsible marketing to children.

The Tories favour setting up a website for parents to complain about “sexualised” products aimed at children, while the Liberal Democrats want to work more closely with existing regulatory bodies to ensure that children are protected.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here