Press Room
Grant Thornton's chief economist comments on today's public
sector finance
Stephen Gifford, Chief Economist at Grant Thornton said:
"Today's announcement that public borrowing has risen to a record
£20.3 billion in November came as no surprise following the
Chancellor's admission in the Pre-Budget Report last week that debt
is set to peak at 78% of GDP in 2014/15.
"The public sector has yet to feel the full brunt of the recession.
Pay continues to increase at a greater rate than in the private
sector and some 23,000 more employees were taken on in Q3 this year
compared with the previous quarter*.
"While the Chancellor used the Pre-Budget Report to set out a goal
to reduce the size of public debt, his plan lacked any detail on
where the cuts will fall. The only clarity so far is that front
line services will not be affected.
"It remains to be seen whether the announced cuts will go far
enough or if it will be necessary to revise the figures after the
general election.
"A frank debate on the options is urgently required. Without this,
there will remain a lack of confidence in the public finances and
the UK economy. Consumer confidence fell this month** and it will
not take many other shocks to push us deeper into recession".
For further information, please contact:
Lisa Ritchie, Grant Thornton press office, 020 7728 2208 or via
email on lisa.ritchie@gtuk.com