Britain’s public finance is in a “relatively weak situation”, official expenses Watchdog warned, with recent attempts to shore GovernmentBalance sheet showing limited success.
Office for budget responsibility (OBR) Sir said Kir Stamor‘S Profit cut and u-turn on winter fuel payment Was running continuous growth in Government loan,
In a clear warning, the guard said loan In the early 2070s, the UK will have more than 270 percent hit of the entire economic production.
Sometimes extended debt stack “The UK capacity is causing adequate erosion to respond to future shocks and increasing pressures on public finance”, OBR Added.
Rhel Reeves is hitting the foot to fill a multi-priest pound black hole in public finance before his second budget in this autumn.
The Chancellor will have to find an additional £ 5BN to plug the difference left by the climbing of Sir Keer on welfare improvement, as well as more than £ 1bn to fund the winter fuel payment for millions of pensioners after the previous U-turn.
Chancellor’s headroom against its current fiscal rules is also unsafe for any downgrade since the forecast of OBR’s final economic development, which is probably visible amidst Donald Trump’s decline from the global trade war of Donald Trump.
In a report, which will set the alarm bells ringing in the treasury, OBR said: “UK’s public finance has emerged from a series of major global economic shocks in a relatively weak position.”
At the end of the previous year, the government debt was 94 percent of the GDP, the sixth highest in the world’s advanced economies, while the UK was facing the third highest borrowing cost in the world.
The OBR said the recent efforts of the government to shore the balance sheet “only met with limited and temporary success” and “borrowed as the governments have reversed the plan to strengthen public finance”.
“Planned tax growth has been reversed, and, more importantly, the cuts in the planned expenses have been abandoned,” it said.
Amid increasing pressure from backbenth MPs, Sir Kir planned to cut £ 5BN from the welfare bill last week. He had earlier reversed the course on the decision to scrap the winter fuel payment for millions of pensioners.
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