National debt set to treble over next 50 years, says OBR

Published On Sep 12, 2024, 5:41 AM

The UK is facing a critical financial outlook, with national debt projected to almost triple over the next 50 years, according to the Office for Budget Responsibility (OBR). Major contributing factors include an ageing population, climate change, and geopolitical tensions. The report warns that without increased tax revenues or a significant rise in productivity, the public finances are unsustainable. Current debt is around 100% of GDP, and projections suggest it could soar to 274% by 2071. The government's public spending is expected to exceed 60% of GDP, while revenue is likely to remain at about 40%. Rising costs in health care, social care, and pensions, along with defense spending commitments, are key challenges.