BCC: Disappointing progress in reducing public sector borrowing
David Kern comments on the public sector finance figures for May 2016, published today by the ONS.
- Public sector net borrowing, excluding public sector banks, rose by £0.2 billion in the current financial year compared with the same period in 2015
- Public sector net debt, excluding public sector banks, at the end of May 2016 was 83.7% of GDP
Commenting on the public sector finance figures for May 2016, published today by the ONS, David Kern, BCC Chief Economist, said:
“Although borrowing fell marginally in May, the first two months of the current financial year point to disappointing progress in reducing the deficit, and our assessment remains that reaching a budget surplus by the end of the decade will be difficult to achieve.
“The slow progress so far is not surprising given the difficult economic circumstances facing the UK, which is making it more difficult to generate tax receipts. Stabilising the public finances remains a critical task, without which it will be difficult to achieve sustainable long-term economic growth.”