Borrowing figures offer hope on deficit
18/06/10 | 11:10
Commenting on the public finance figures for May, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“These figures were slightly better-than-expected and show that the deficit has started easing - even before the government begins to implement its deficit-reduction plan. However, there is no room for complacency and a credible reduction programme is vital to ensure we preserve our credit rating.
“The new figures reinforce hopes that a plan to cut the deficit can be carried out without causing undue damage to the economy.
“Next week’s Budget will be a huge challenge for the coalition. While the markets must be left in no doubt that the government is serious about spending cuts, it is critical to avoid hasty measures that risk pushing the economy back into recession. There should be a freeze in the total public sector wage bill and reform of unaffordable public pensions. But, the Chancellor should steer clear of policies that restrict the private sector’s ability to lead a sustainable recovery.”
Ends
Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors:
ONS: http://www.statistics.gov.uk/cci/nugget.asp?id=206
The BCC has released a survey of business views on taxation ahead of the Budget. You can find it here.
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 business across the UK, which employ over five million people