National debt 'will improve with economic recovery'

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National debt 'will improve with economic recovery'

Tue 20th Oct 2009

While the size of the national debt in the UK is bad at the moment, it will get smaller as the economy recovers and it is not as serious as in other countries, according to the British Chambers of Commerce (BCC).

Economic advisor at the organisation David Kern made his remarks following the publication of a report by the BCC, which indicated that the UK economy could be on the brink of recovery.

He pointed out that economic improvement will bring in more taxes, which will help to solve the fiscal problem.

Mr Kern also noted that although the national deficit is bigger in the UK than in other countries, this is not so serious because we start from a much lower level of debt.

"Our debt when the recession started was less than 40 per cent of the economy, in some European countries the debt is already 80-100 per cent, so, it's swings and roundabouts," he concluded.

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