Commenting on the public sector finances for September 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“The UK’s public sector finances have worsened in September and in the first six months of this financial year, compared to the same period last year. Any prospects of the government reaching its debt reduction target outlined in the last budget appear to have vanished.
“Despite strong economic growth, the government’s ability to generate tax revenue has deteriorated due to weak earnings growth, the decline in oil and gas outputs, and the challenges facing the financial sector. We must adjust to this new reality, while persevering with a long term plan to reduce current public sector spending. It is important for all political parties to resist the temptation to make pre-election promises that might have harmful long-term effects on the economy.”
