Demographic pressures and the costs of climate change will weigh on the public finances, says the Office for Budget Responsibility (OBR). Surging public spending is projected to lead to a rise in the ratio of public debt to 274% of GDP over the coming 50 years, compared with less than 100% now.
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UK government finances are on an ‘unsustainable’ path, watchdog warns
“On almost any scenario the government is likely to have to raise taxes or cut spending to keep the public finances on a sustainable trajectory,” Richard Hughes, OBR chair, said as it published its Fiscal Risks and Sustainability report on Thursday, analysing longer-term fiscal trends.
