“The public finance numbers for August, released today, were worse than expected, with the reported deficit for the month of £13.7bn higher than predicted, while net debt increased to 100.0% of GDP, at £2,768bn.
“Although disappointing, Chancellor Rachel Reeves will be relieved that the cumulative deficit for the year to date is not as bad as it could have been, as she faces a series of tough choices in advance of the Autumn Budget next month.
“While the Chancellor’s primary focus will be on bringing public spending under control in the short-term, we hope she will also be thinking about how best to lay the ground for economic growth. Reform of business rates, VAT and employment status within the tax system needs to be high up the agenda as part of a wider tax roadmap for businesses to stimulate economic growth and boost investment, while at the same time she needs to set out a fiscal strategy to put the public finances onto a sustainable footing over the long-term.”
ENDS
Notes to editors:
CONTACT: ICAEW media office stephen.froome@icaew.com or 07970 402 073
- The reported monthly deficit in August of £13.7bn, cumulative deficit for the five months ended 31 August 2024 of £64.1bn, and month-end public sector net debt of £2,768bn compare with the OBR’s March 2024 forecast of £11.2bn, £57.8bn and £2,742bn respectively.