By Max Clarke

Figures published by the Office for National Statistics showed Public Sector net borrowing drop 7% in March compared to the previous year, even undercutting the Office for Budget Responsibility’s estimate.

The British Chambers of Commerce, a business organisation representing over 100,000 businesses across the country and the group given soul responsibility as partner for Government’s flagship Local Enterprise Partnerships scheme, discuss the figures; with the group’s chief economist, David Kern, labelling the drop as a sign that the Coalition’s austerity plan is working.

Said Kern: “The public finance figures for March show that the deficit for the last financial year was slightly lower than the OBR predicted at the time of last month’s Budget. Although the figures are encouraging, the UK is still facing a huge fiscal deficit and there is no room for complacency. Reducing this deficit and restoring stability to our public finances must remain a top priority.

“British business supports the Government’s credible deficit-cutting measures, and these figures reinforce our belief that the austerity plan is achievable. The emphasis on spending cuts rather than tax increases must be maintained.

“However, the Government’s strategy will only succeed if austerity measures are supplemented by policies that enable businesses to create jobs and growth. On its part, the MPC must postpone interest rate increases until the recovery is more secure.”