OBR: Public debt projected to exceed 270% of GDP by the mid-2070s
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The UK’s national debt is projected to treble over the next 50 years, driven by an ageing population, climate change, and geopolitical tensions, according to the Office for Budget Responsibility (OBR).
In its latest Fiscal Risks and Sustainability Report, the OBR revealed that without increased tax revenues or a significant boost in productivity, the public finances are unsustainable.
The report highlights that public spending is set to rise from 45% to over 60% of GDP by 2071, with a significant increase in healthcare, social care, and pensions. Additional pressures include increased defence spending, the transition to net zero, and a falling birth rate.
Chief Secretary to the Treasury Darren Jones told the BBC: “The OBR has laid bare the shocking state that our public finances were left in by the previous government.”
He added that the UK economy is now experiencing the “highest debt since the 1960s, highest taxes since the 1940s, and debt on track to be almost three times our GDP”.
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