The document discusses the economic prospects for the South West of England after reductions in government spending ("fiscal withdrawal"). It predicts that public sector job losses in the region could reach 60,000-115,000 due to spending cuts. However, it also notes that the region is well positioned for rebalancing its economy, moving away from reliance on domestic demand and public sector jobs towards private investment, exports, and higher value industries. New local enterprise partnerships may help encourage this transition for small businesses, but it is unclear how much they will impact the region's economy.