Public Finance Figures Highlight Scale Of The Challenges Faced By Uk Economy
24 April 2012 in Chamber News
Public sector borrowing in March 2012 was £18.2bn, compared with £18.0bn in March 2011
Commenting on the public sector finance figures for March, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:“The public sector finance figures are some two billion pounds higher than expected by most analysts. However, since the overall figures were revised down slightly, borrowing for 2011/12 was £126bn, as predicted by the OBR at the Budget.
“Eliminating the country’s structural deficit presents huge difficulties to the UK economy. Significant progress has been made, however, and we believe the deficit reduction plan is achievable. Over the past two years, borrowing has been cut by almost 3% of GDP. Persevering with Plan A is vital, but so too is boosting private sector growth. The government can do both by reallocating priorities in the current spending envelope towards measures that will support business, for example cutting regulation and providing more support for exporters. More must be done to empower the private sector firms to drive the recovery, create jobs, invest and export.”