The latest from the Black Country 

Continued Progress in Cutting the Deficit but UK Still Faces Major Challenges, says BCC

  • In June 2015, public sector net borrowing, excluding public sector banks, was £0.8bn lower than in June 2014
  • In the first three months of the current financial year, public sector net borrowing, excluding public sector banks, was £6.1bn lower than in the corresponding period in 2014
  • Public sector net debt, excluding public sector banks, at the end of June 2015 was 81.5% of GDP

Commenting on the public sector finances for June 2015, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce, said:

“Today’s figures confirm the welcome progress we have seen in recent months to reduce the UK’s large deficit. Although we are still early in the new financial year, on the basis of the first quarter, and recent figures showing a rise in real earnings, there is a realistic chance that borrowing in the entire financial year will be lower than forecast by the Chancellor in his Budget earlier this month.

“However, we must not understate the big challenges that the UK faces in restoring stability to our public finances. Britain’s financial sector was hit hard in the recession and, together with lower oil and gas output, our ability to generate tax revenues has been seriously constrained. Therefore, we have to continue to focus on other means to tackle the deficit - including cutting current government spending.

“The government must also put more emphasis on policies that will boost economic growth, most obviously infrastructure investment and supporting exports. Only by doing this will the UK be able to create an enterprising economy which can deliver sustained growth over the long-term.”

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