Stability a thing of the past for public finances?
Friday 19 July 2019, Commenting on the public sector finances for June 2019, published today by the Office for National Statistics (ONS), Sumita Shah, ICAEW Regulatory Policy Manager, said:
“The ONS figures published this morning show a concerning picture of our public finances in the first quarter of this year, with a deterioration in June with Q1 borrowing figures sitting at £17.9bn up by £4.5bn on the same quarter last year.
”Both prime ministerial candidates are promising to cut taxes and increase public spending, with investments in strategic projects such as Northern Powerhouse Rail and rolling out high-speed broadband to rural areas. However, the consequence will be even higher borrowing, reversing progress made over the last few years to reduce the deficit.
“Yesterday’s Office for Budget Responsibility Fiscal Risks Report highlighted the vulnerability of the public finances to economic headwinds and the challenges of paying for public services over the long term.
“The new PM and Chancellor will need to focus more on the bigger picture if stability is not to become a thing of the past for the UK's public finances.”
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Jude ObiSenior Media Relations Executive, ICAEW
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