WIREDGOV

The CBI commented on the annual public finance figures for 2014/15, at the same time as the Institute for Fiscal Studies (IFS) weighs up the General Election manifesto pledges on public spending. 

Rain Newton-Smith, CBI Director of Economics, said:

“Public borrowing decreased by £11.1 billion in the last financial year and the government borrowed £2.9 billion less than the Office for Budget Responsibility (OBR) forecast. The government’s deficit as a share of GDP has halved during the course of this parliament.

“There is still plenty more to do though, so whoever forms the next government must prioritise deficit reduction. Sound public finances are vital both to supporting business confidence and funding sustainable public services.

“Taxes paid by business make an important contribution to funding government spending - in 2014/15 the £174.1 billion of business tax receipts exceeded the combined NHS and education budgets.”