New public finance figures highlight huge challenge facing UK
19/11/09 | 11:19
Commenting on the public finance figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“October’s figures were worse than expected. On the basis of current trends, hopes that borrowing for this financial year would be below the budget forecast of £175bn are not realistic.
“If present trends continue, Britain’s international credit rating will be seriously threatened, especially if the government does not announce credible and forceful plans for reducing the deficit in the Pre-Budget Report. These measures will have to be implemented as soon as the recession is over.
“The size of the public sector must be pared back significantly over the next few years, so as to allow private firms to generate the wealth necessary to drive economic growth. As an initial step, and while inflation is still low, public sector pay could be frozen without causing undue pain.”
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Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
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 business across the UK, which employ over five million people.