Narrowing trade deficit ‘could reduce overall debt’

The nation’s overall debt could be reduced, it has been suggested, as the UK trade deficit beat expectations in February.

It narrowed to £6.2 billion in the second month of the year and Caxton FX has noted the change could bring substantial benefits.

Duncan Higgins, senior analyst at the organisation, said that sterling’s lowly rate was the cause of the action, as it has encouraged the competitiveness of UK exports to increase.

He commented: “Certainly the data is supportive and marks a positive step in reducing overall debt.”

The expert noted, however, that the incoming government will need to detail a precise strategy for relieving the “huge debt burden” that is currently weighing down the economy, as the road ahead “remains uneven”.

Labour’s proposals to give the independent Low Pay Commission a broader remit in tackling poverty – announced in the party’s election manifesto – were recently welcomed by the Trades Union Congress.

By Joe Shervin