After poor public sector finance figures are revealed, Chamber head calls for decisive action to be taken

Reporter: James Trueman
Date online: 19 February 2010

Yesterday, the UK public sector figures for January were revealed at a £4.3bn deficit, compared to a £5.27bn surplus this time last year.

It is the first time the government has had to borrow in January to make up a budget deficit since records began in 1993.

And with the pound further weakening against the dollar and the Euro, there are growing fears over the ability of the government to deal with the UK’s growing public debt.

Since these figures were revealed, there have been calls from leading economists and the opposition for immediate and decisive action to be taken to combat the worsening public finance problem, before it begins to adversely affect the UK’s credit rating and the country’s overall economic recovery.

Reacting to these new figures, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber, said: “Yesterday’s public finance figures and today's ongoing debate over dealing with public debt highlight the urgent need for the Government to spell out exactly how it intends to deal with the deficit. Britain's recovery lies in the balance, procrastination and electioneering is doing nothing for business confidence.

"Sixty-seven per cent of the businesses that responded to our recent business issues survey reported that uncertainty over Government spending plans was having an impact on their business and it is now the biggest issue for businesses in the region, ahead of taxation.

"Business confidence across Greater Manchester was at pre-recession levels before December's Pre-Budget Report, however evidence is emerging that ongoing uncertainty since our last Quarterly Economic Survey has damaged that confidence and this could have worrying consequences for investment, job retention and job creation."