PUBLIC FINANCE FIGURES: FIRES ON ALL FRONTS

12.00.00am BST (GMT +0100) Fri 18th Jul 2003

Reacting to this morning's public finance figures showing a sharp increase in public sector borrowing driven by increased government spending and lagging tax receipts, David Laws MP, Liberal Democrat Shadow Chief Secretary to the Treasury, said:

"These figures are another setback for a government fighting fires on all fronts."

"These figures serve to confirm the suspicion that many economists have had that the public finance problems are structural and not just down to a temporary slow down in growth."

"There is a serious risk that higher governing borrowing will mean that more tax increases are needed - and that investment in public services will be jeopardised."

ENDS

Note to editors;

1. Budget 2003 projected a 7.9% increase in current receipts over the financial year - in the first three months the increase has been 5.7%.