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He didn't mean economically but was referring to the mental impact from the new government's decision to start tackling the deficit with cuts in the public sector.
He has a very valid point. Although we might wake up most mornings to find a politician on Today talking about the dangers of relying on one sector of the economy for so long as it claims Labour did with the public sector, that reliance cannot and should not be turned off overnight.
Everyone wants to do more with less but the current obsession with the idea that cost savings equate to waste are damaging. It implies that in most organisations there are bloated departments just ripe for the axe. That people work inefficiently and better working practices could save time and head count is also a fairly insulting idea when you think about it.
But if you view cost cutting in terms of trying to reduce spending made with little thought then IT has a key role to play and so do resellers. Whether there is a double-dip in any sense the channel needs to get through to those that are unable to think about their infrastructure constructively for themselves and help them spend wisely and make the budgets they do have left count.