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News & Blog

Read the latest business news, blogs and thought leadership articles from our members, as well as updates on the Edinburgh Chamber of Commerce's work in the city.

News & Blog

BCC: Welcome Deficit Reduction in March, but Huge Task Still Lies Ahead

Posted: 26th April 2016

bbc

  • Public sector net borrowing, excluding public sector banks, fell by £17.7 billion in the full financial year ending March 2016
  • Public sector net borrowing, excluding public sector banks, fell by £2.6 billion in March 2016 compared with March 2015
  • Public sector net debt, excluding public sector banks, at the end of march 2016 was 83.5% of GDP

Commenting on the public sector finance figures for March 2016, published today by the ONS, David Kern, BCC Chief Economist, said:

“Despite a welcome improvement in public finances in March, and further gradual progress expected in the year ahead, our view is that the return to a budget surplus may take a little longer than the OBR predicted.

“The structural changes in the UK economy since the financial crisis have reduced the capacity of the economy to generate tax receipts, and our public spending will have to adjust in the coming years to this new reality.

“While this may necessitate painful measures, only by putting our public finances on a sound basis will it be possible to create a stable environment for business to thrive.”

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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