Commenting on public sector finance figures released today which showed that the government has borrowed £38.4 billion so far this financial year (April to August 2015), £4.4 billion lower than at the same point in 2014/15, James Sproule, Chief Economist at the Institute of Directors said:
“It is good news that the deficit continues to creep down from its unsustainable levels reached during 2008/09. All the time the government spends more than it collects, however, the total stock of public debt continues to rise. The OBR estimates the UK will still owe more than 70 per cent of its GDP to creditors by the end of the decade. This is assuming steady growth and no external shocks – something which, of course, cannot be guaranteed.
“This demonstrates the vital importance of continued restraint in the public finances. More than eight in ten IoD members support the government’s plans to run a budget surplus by the end of the parliament. However, they are clear that spending on value-for-money infrastructure projects and education must be prioritised.”