“Today’s data on the UK public finances make the point that the best way to get the debt burden down is to grow the economy, rather than hike taxes or slash spending.
“Monthly borrowing is continuing to undershoot the OBR’s latest forecasts as the economy recovers more quickly than expected.
“Public sector net debt was actually lower at the end of July as a share of national income (98.8%) than June (99.7%). This measure of the debt burden is at least as important as the figure in billions of pounds.
“The ONS estimate of the debt-to-GDP ratio topped 100% in May 2020 and then again in July last year, before being revised down. These revisions also reflected stronger economic growth.”
Notes to editors
Contact: Emily Carver, Head of Media, 07715 942 731
IEA spokespeople are avaialble for interview and further comment.