Warning over UK borrowing

Worse than expected public finance figures for October have heightened further the focus on the Government's imminent Pre-Budget Report. Public sector net borrowing reached £11.5 billion last month, up from £0.1 billion a year earlier and almost double most forecasts of around £6 billion. If the trends were to continue, David Kern, chief economist at the British Chambers of Commerce, warned of a serious threat to Britain's international credit rating, particularly if credible plans for reducing the deficit were absent from the Pre-Budget Report. "These measures will have to be implemented as soon as the recession is over," he added. "The size of the public sector must be pared back significantly over the next few years, so as to allow private firms to generate the wealth necessary to drive economic growth."
 
 
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