THE Small Firms Association (SFA) has said Government spending is like a runaway train. It accused the Government of sacrificing long term prosperity for short term political gain over its handling of public expenditure.

SFA director Mr Brendan Butler said the Government seemed incapable of meeting agreed spending, targets and, on past experience, planned spending figures - set to increase by more than 6 per cent would be breached next year.

"Already these costs will have to be revised to take account of the new public sector pay deal," he said in a statement yesterday.

He said current Government spending had increased by almost three times the rate of inflation over 1995 and 1996. "This represents approximately £600 million in lost opportunity to reduce taxation and debt."

He said there had been little pressure to maintain very tight ,controls of expenditure because of the buoyant economy.

"In the five year period from 1991-1996 Government expenditure will have increased from £8.6 billion to £12.268 billion, an increase of 43 per cent, or in excess of three times the rate of inflation."

If any business, large or small, had increased day to day costs by 42 per cent in the last five years, "it would have gone to the wall".

Any increases in public spending, which were funded by taxation or borrowing, would further reduce the competitiveness of the exposed sector (small businesses) of the economy, according to the SFA:

"It is a rather perverse situation, when, despite having an impressive economic growth rate, the benefits are being used for a zero return," said Mr Butler.

"These competitive gains must no longer be put at risk by self seeking, high spending departments and their ministers," he added.