IoD reaction to public sector borrowing figures

Dated: 21 April 2011

Commenting on today’s data on public sector finances, Inbal Robbas, Senior Economist at the Institute of Directors, said:

“Public sector finance data published today presents an encouraging picture. Today’s figures are below the OBR’s forecast for 2010/11 of net borrowing of £145.9 billion, and might imply that the deficit will undershoot the OBR’s forecast.

“However, as we have previously argued, the lower cumulative deficit does not mean that the Government should change course and ease off the spending squeeze. Whilst the deficit could undershoot the OBR forecast this year we fear it could overshoot it in the 2011-12 financial year – due to weaker than expected GDP growth. Fiscal policy is on the right track but it remains vulnerable to overall GDP growth.”

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

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