20th November 2015
The Taxpayer’s Alliance has hit out at the government’s increased borrowing figures, stating the need for ‘considerable’ cuts to be made in next week’s Autumn Statement.
Official figures show public sector net borrowing has increased £1.1 billion October, compared with the same month last year, to hit 38.2 billion – the highest level of borrowing in October in six years.
The government has borrowed £54.3 billion so far this year meaning there is little progress towards the Office of Budget Responsibility’s forecast.
In order to hit target, chancellor George Osborne will have to cut borrowing to just £15 billion between now and April.
Jonathan Isaby, chief executive of the Taxpayer’s Alliance, said: ‘These dismal figures underline the dire need for the chancellor to announce considerable savings at the spending review next week.
‘A little over halfway through the year, the government has already borrower more than £54 billion and meeting the targets the chancellor set himself for the year looks nigh-on impossible.’
Isaby added that spending is still at the same level it was before the financial crisis.
‘Councils, police forces and the NHS are all protesting that they can’t make any more savings, but there simply isn’t ant alternative with tax receipts already at the maximum level history suggests the economy can cope with,’ he said.
‘Spending across much of the public sector remains at very similar levels to the 2000s when the seeds of Britain’s fiscal woes were sewn so a dose of reality is sorely needed.’
He added: ‘It’s time for the chancellor to rethink ring-fences and make responsible decisions on state pensions, international aid and much more. His credibility and the future prosperity of the country depends on it.’