21/07/11

  • Public sector borrowing in June 2011 was £14bn, compared with £13bn in June 2010

Commenting on the public sector finances for June published today by the Office for National Statistics, David Kern, Chief Economist at the British Chambers of Commerce:

“The borrowing figures for June were disappointing, and worse than expected. Total borrowing for the financial year as a whole will be larger than the OBR predicted at the time of the Budget. This is not surprising, as the OBR growth forecast is too optimistic.

“Making allowances for the lower growth, the government’s fiscal strategy is still on course, and it is important that the government perseveres in reducing the deficit. Stabilising our public finances must remain a key policy priority, and there is no justification for a Plan B. Economic growth, though weak, is likely to continue and reducing the deficit will improve the economy’s long-term growth prospects. However, in order to reduce the risk of a setback, the MPC must maintain low interest rates until the early months of next year. On its part, the government must implement policies aimed at supporting growth and empowering business to drive recovery.”

Ends

Notes to editors:

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk

Media contacts:

Liz Larvin
Tel: 020 7654 5813 / 07825746812
Email: l.larvin@britishchambers.org.uk

Lisa Morrison
Tel: 020 7654 5812 / 07717682221