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Patrick O'Flynn warns that government borrowing is back out of control
Date 23/07/2014 13:56  Author webmaster  Hits 2084  Language Global

New UKIP economic spokesman Patrick O'Flynn MEP today branded the coalition government a total failure, after the latest official borrowing figures showed that the public sector deficit is rising sharply once again.

Borrowing in June totalled £11.4bn, some £700million more than had been forecast by economists, and a massive £3.8bn up on the same month last year.

Allowing for the impact of a one-off cash transfer from the Bank of England last year, borrowing in the first quarter of the 2014-15 financial year has come in at £36.1bn, some 7.3% higher than the same period in the previous year.

Mr O'Flynn said: "This coalition government was formed to get rid of the deficit and yet it barely got a third of the way towards that target and now it is going backwards fast.

"Given the huge accumulation of extra debt that has already taken place under George Osborne's chancellorship, this is a profoundly worrying turn of events.

"The Labour Party has barely seemed to notice that the big economic story of the summer is the deficit soaring once again, while complacency remains the watchword of the Osborne/Alexander regime at the Treasury.

"If one were a cynic one might suggest that Osborne is pinning his hopes on a new debt-fuelled boom carrying the Tories through next year's general election before his successor is left to pick up the pieces.

"It is bad enough when an outgoing Labour finance minister has to leave a note saying sorry for the state of the books, but on present trends Messrs Osborne and Alexander will have to leave a note apologising too.

"The further into its five-year term it goes, the more the coalition appears to be a continuum of its Labour predecessor and the less it looks like the change of direction the British economy needed."