BCC welcomes deficit cut

  • In July 2015, public sector net borrowing, excluding public sector banks, was in surplus of £1.3bn, compared with a very small deficit in July 2014
  • In the first four months of this financial year, borrowing excluding public sector banks, was £7.3bn lower than in the corresponding period in 2014
  • Public sector net debt, excluding public sector banks, at end of July was 80.8% of GDP

Commenting on the Public Sector Finance figures issued today by the ONS, David Kern, Chief Economist for the British Chambers of Commerce, said:

“Today’s figures confirm that further welcome progress has been made in cutting the deficit.

“On the basis of the figure for  first four months of the current financial year it is likely that borrowing in the financial year as a whole will be lower than estimated by the Chancellor in his recent budget.

“However, a very big task still lies ahead of us, and the UK faces major challenges in restoring stability to its public finances.

“The ability of Britain’s banking sector to generate profits and tax receipts was hit hard during the recession, and together with much lower oil and gas receipts means that the country’s ability to generate tax revenue is seriously reduced.

“The progress made this year in cutting the deficit provides the Chancellor with greater flexibility, which will enable him to put more emphasis on ways to boost economic growth. This must include investing in infrastructure and boosting exports.

“Only by doing this will the UK be able to build an enterprising economy that can deliver sustained growth over the longer term.”