UK public finances will remain under pressure for some time

24th April 2013

Public sector net borrowing was £15.

1bn in March 2013, £1.6bn lower net borrowing than in March 2012 After removing the effects of special transactions, public sector net borrowing was virtually the same as in 2011/12, at £120.6bn Public sector net debt at the end of March 2013 was 75.4% of GDP  Commenting on the Public Sector Finances for March 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: -The headline figure shows an improvement compared with a year ago, but was only marginally better than the estimates published by the OBR at the time of the Budget. For the entire financial year, the deficit remained virtually unchanged. Government spending in the financial year rose by 1.8% in nominal terms, only a modest real fall when factoring in inflation. -Britain's structural deficit remains unacceptably high, and the increase in the country's net debt reinforces the case for adhering to a realistic deficit cutting plan. The Chancellor should persevere with real cuts in spending, while prioritising measures that will enhance the productive potential of the economy. If the Chancellor demonstrates commitment to a realistic fiscal plan, the markets will allow him to make greater use of the flexibility that his own fiscal plan permits him to make.

You might also be interested in

BCC Quarterly Economic Survey: Firms Treading Water on Investment

Thu 11th April 2024

The BCC’s Quarterly Economic Survey – the UK’s largest and longest-running independent business survey – shows most firms reporting no improvement in investment levels, sales or cashflow in the first quarter of 2024.

Access To Finance Challenge for SMEs

Fri 5th April 2024

Accessing finance is becoming more difficult for a large number of SMEs, according to new data from the British Chambers of Commerce Insights Unit.

Financial Wellbeing Prioritised by Sheffield Chamber as Cost of Living Greatens

Wed 3rd April 2024

Sheffield Chamber of Commerce and Industry (SCCI) has launched a new Financial Wellbeing Support Service to help employees in the city region amid growing cost of living concerns.

Government Fails To Listen On Costly Import Charges

Wed 3rd April 2024

William Bain, Head of Trade Policy at the British Chamber of Commerce reacts to details of the common user charge being introduced on animal and plant product imports into the UK later this month