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IEA expert responds to ONS public sector finance figures

Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, responded to ONS public sector finance figures for August 2021

“The UK government borrowed slightly more than expected in August, but there were some reassuring points too.

“Public sector net debt of around 97.6 per cent of GDP at the end of August was actually lower than the 98.8 per cent reported for the end of July. Growing the economy is still the best way to get the debt burden down.

“In the meantime, monthly borrowing continues to undershoot the OBR’s latest official forecasts, albeit by a bit less in August than usual.

“The publication of more optimistic projections for the economy and public finances in the Autumn Budget, along with the reinstatement of some credible fiscal rules, should therefore save us from further tax increases.

“The government should focus on supporting growth, rather than finding even more ways to raise the burden of tax.”

Notes to editors

Contact: Emily Carver, Head of Media, 07715942731

IEA spokespeople are available for interview and further comment.

Public sector finances, UK: August 2021

Original article link: https://iea.org.uk/media/iea-expert-responds-to-ons-public-sector-finance-figures/

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