BCC: Reducing public sector borrowing remains a challenge

  •  During the first seven months of the financial year 2014/2015 (April to October), public sector net borrowing, excluding public sector banks, was £3.7bn higher than in the same period last year
  • In October 2014, public sector net debt, excluding public sector banks, was 79.5% of GDP

Commenting on the public sector finances for October 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“UK public sector finances have improved marginally in October, but monthly figures can be erratic. A longer term comparison shows that the government’s debt reduction target set in the last budget appears to be out of reach. Our assessment is that the borrowing target for the entire financial year 2014/2015 will be exceeded.

“Despite strong economic growth, the government’s ability to generate tax revenue has deteriorated due to weak earnings growth, and the decline in oil and gas outputs. Regardless of the result of the general election, it is imperative for the UK to persevere with a national strategy to reduce the public sector deficit – allowing British businesses to drive a sustainable recovery.”

Written on 21st November 2014Lillie Geistdorfer. Published in BCC, News