Better than expected borrowing provides opportunity to defend UK credit rating - Lincolnshire Chamber of Commerce and Industry, UK

Commenting on the December public finance figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The December deficit, although lower than expected, does not justify any complacency. The UK’s deficit is still massive by historical standards and debt has risen to a record high. Nevertheless, there is a realistic possibility, on the basis of recent trends, that the outcome for this year will be slightly lower than the Chancellor’s Pre-Budget Report forecast of £175bn.

“Action still needs to be taken to ensure that our AAA rating is not threatened. In the forthcoming Budget, the government must spell out its medium-term fiscal plans with greater detail. A freeze in the overall public sector wage bill, and efforts to contain ballooning public sector pensions, would enhance credibility and persuade the markets that the government is serious about cutting the UK’s unsustainable deficit, and about enabling business to drive recovery.”