Reducing public sector debt must remain a priority

22nd July 2014

In June 2014, underlying public sector net borrowing was £11.

4bn, £0.1bn less than in June 2013 For the three months of the 2014/2015 financial year to date (Apr Jun), underlying public sector net borrowing was £2.4bn higher than in 2013/2014 At the end of June 2014, public sector net debt, excluding the effects of financial intervention, was 77.3% of GDP Commenting on the public sector finances for June 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -Continuing to reduce public sector borrowing must remain a priority for the government. While there was a slight fall in borrowing over the month, borrowing for the financial year is still higher than a year ago. The way things are right now, the deficit reduction predicted by the Office of Budget Responsibility appears to be very difficult to achieve. -Since the financial crisis, weaknesses in the financial sector and structural changes in the rest of the economy have created a major shortfall in the UK's ability to generate tax revenues, even as economic growth returns to normal. The government must adjust to these new realities and continue to reduce the share of current public spending in GDP. This will be difficult, and perhaps unpopular, but it is essential if we are to secure a lasting recovery.