According to the OBR’s 2017 Fiscal Risks and Sustainability Report, these pressures include an aging population, increased geopolitical tensions, and warmer temperatures brought on by climate change.
Chief Secretary to the Treasury Darren Jones stated, “The OBR has laid bare the shocking state that our public finances were left in by the previous government.”
“We have the highest taxes since the 1940s, the greatest debt since the 1960s, and debt that is expected to surpass GDP by nearly three times.
The OBR stated that the public finances were not long-term sustainable in the absence of increased tax revenues or a return to post-war productivity levels.Something has occurred.
According to the government’s official forecaster, the base case for national debt in 2071 is 267% of GDP, with trade disputes, cyberconflict, sickness, and war risks driving that figure even higher.
According to OBR projections, public spending on health, social care, pensions, and related benefits will rise by an equivalent of £250 billion annually by 2071.
According to the analysis, the ambitions of both the current and previous UK governments to increase defense spending to 2.5% of GDP may put further strain on the nation’s budget.
It also stated that fighting climate change-related extreme weather, the expense of moving to net zero, and a declining birth rate might result in more expenses and lower revenue.
The expense for state pensions and social care is projected to climb dramatically.
