Tax rises or spending cuts are needed to avoid an “unsustainable” public debt burden, the UK’s fiscal watchdog has warned.
The Office for Budget Responsibility said the government faces a debt burden at three times more than its current level due to increasing costs from an ageing population and falling tax revenues from motor fuel in the future.
Debt is on course to reach almost 320% of GDP in 50 years’ time – up from 96% currently – if successive governments do not tighten fiscal policy, the government agency said.