REDUCING PUBLIC SECTOR DEFICIT - STILL A LONG JOB
September 23 2014.



- In August 2014, underlying public sector net borrowing was £11.6bn, £0.7bn higher than in August 2013

- During the five months (April – Aug 2014) underlying public sector net borrowing was £45.4bn, an increase of £2.6bn compared with the same period in the previous financial year

- In August 2014, underlying public sector net debt was £96.7bn higher than in August 2013


Commenting on the public sector finances for August 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: “The ONS figures show that the UK’s public finances deteriorated slightly in August, and that there was a small cumulative decline in the first five months of this financial year. This means it will be difficult for the Office of Budget Responsibility to achieve the improvement it predicted at the time of the March Budget.

“This decline is particularly disappointing given the economic growth we have seen this year, but it shouldn’t come as a huge surprise. The sharp fall in oil and gas output since the financial crisis, and the problems facing the UK financial sector, have both created a major hole in the UK’s ability to generate tax revenues even when economic growth improves.

“We must continue to focus on reducing public spending as a share of GDP, so that the business sector is able to drive a sustainable recovery.”