BPF 'Very Concerned' by Government Borrowing

Last week whilst giving evidence to the Treasury Select Committee the Governor of the Bank of England called for clear plans from the Government to reduce its huge borrowings. The OECD this week in its annual survey has called on the British Government to cut the size of its deficit for more than it currently intends or face major problems in coming years.

The OECD significantly advised our Government to focus on spending reductions rather than raising taxes.

BPF President Paul Jukes said, The BPF is very concerned at the huge level of Government borrowing, £175 billion in the current financial year. In May alone the Government borrowed £19.9bn which a few years ago would have represented half the borrowing requirement for the entire year.

Even before the current financial crisis and Bank bailouts the BPF was writing to the Chancellor, expressing concern about high levels of Government borrowing.

Mr Jukes said, I welcome the Governor of the Bank of England Mervyn King's comments last week calling for clear plans from the Government to reduce borrowing through public expenditure cutbacks particularly. Such plans are needed right now if we are not to lose investor confidence and risk a downgrade in our national credit rating.

ENDS

For further information on this press release, please contact Anthony Roberts, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5043, fax 020 7457 5045, email: [email protected]

Notes for editors:

1) British Plastics Federation (BPF) is the UK trade association for the plastics industry - representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.