The UK Office for Budget Responsibility (OBR) has issued a warning that the country's public finances are in a "relatively vulnerable position" following a series of major global economic shocks. The OBR highlighted that the UK's debt is projected to reach 270% of GDP by 2070, a trajectory worsened by recent government U-turns on planned spending cuts and higher-than-expected policy commitments. These developments have substantially eroded the UK's capacity to respond to future economic shocks. OBR Chair Richard Hughes expressed concerns about the risks posed by economic shocks and changes in the bond buyer base. He also indicated that current tax increases are insufficient to address the ongoing debt spiral. The report underscores daunting risks to the stability of the UK’s public finances, with market reactions including a fall in sterling and a rise in gilt yields. The OBR's assessment calls for a serious and mature political discussion on the fiscal challenges ahead.
Tax hikes insufficient to fix UK debt spiral, OBR’s Hughes says https://t.co/M2AgCKxzHm via @PhilAldrick https://t.co/27HglUnMGD
El presidente de la OBR, Hughes: Hay motivos para preocuparse por la deuda del Reino Unido.
OBR Chair Hughes: There Are Reasons For Concern About UK's Debt