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Great Britain is confronted with “discouraging” risks to public finances, since its increasing debt burden leads to a “considerable erosion” of his ability to react to future shocks, the independent household monitor warned.
The office for budget responsibility said on Tuesday in its tax risks and sustainability reports that efforts to set them United Kingdom With a more sustainable fiscal foundation, in recent years, the “limited and temporary” success has only been achieved.
The underlying public debts have been at the highest level since the early 1960s and will continue to rise, and the fighting of the problem has become “significantly more difficult” in view of low economic growth and rising interest rates, added the OBR.
“Against this background of the more difficult domestic and global backdrop, the extent and the selection of risks for the British fiscal views are discouraging,” it said. “The result was a significant erosion of the united Kingdom’s ability to react to future shocks and growing pressure on public finances.”
The report takes place, as Chancellor Rachel Reeves in the autumn budget due to further deterioration in the health of public finances, has raised another pressure to increase taxes.
U -turn in relation to welfare reforms in connection with the tribes of the British economy and the threats from productivity violations from the OBR could force tax increases or expenditure of more than 20 billion GBP in autumn, according to the economists.
In his report, the OBR found that Britain now has the sixth highest fault, the fifth highest deficit and the third highest credit costs under 36 advanced economies.
The report also emphasizes additional pressure from the sustainability of the state and private pensions as well as the costs for climate damage and the net zero transition.
The increasing public borrowing in Great Britain and other advanced economies leads to more extensive pressure on the global sovereign debt markets, added to the OBR.
It was found that the loan costs have increased further, since the long -term gold -plated yields in Great Britain are now higher than at some point since the beginning of the century.
In the response to the report, the Ministry of Finance said: “We recognize the long -term economic realities that the OBR presents.
“For this reason, we endeavor to ensure the stability in the economy through our non -negotiable budget rules, which made it possible for us to drive a decade in Great Britain and put more money into people’s pockets,” added.
