ICAEW: Political stability vital for strong financial leadership

Commenting on the Public Sector Finances for May 2017, published today by the ONS, Ross Campbell, ICAEW Public Sector Director, said:

In the wake of the General Election result, it’s disappointing that no party manifesto contained a robust plan to deal with the structural problems in the nation’s economy. The resulting hung parliament increases the uncertainty associated with Brexit, while also diverting resources and attention away from the economy. This could negatively impact the health of the public finances. As a result, and in order to deliver credible fiscal plans, it’s important that Government puts strong financial leadership at the top of its priority list
There have been signals from Government that we are likely to see an end to austerity and therefore a possible increase in public spending. With the economy still in a fragile state, it’s important that any increased expenditure is allocated to areas that will help to drive economic growth – infrastructure, training, and fiscal stimulus