Six Starcist Warning from OBR report naked the dangerous state of Britain’s finance

Government spending watchdog set alarm bells are ringing Treasury on Tuesday released a report and bare the dangerous state of the people of Britain finance,

Office for budget responsibility (OBR) Spending, lending, and Government loan size Everyone is ready to climb in the coming decades.

This blamed Government’s disability for tax increase And cut in cuts, a node to the head Kir Stamorrecently Welfare u-turnBut the government kept a wide set of warnings about the further dangerous way forward.

Independent I look at six starcast warnings in OBRReport.

Britain’s public finance in ‘relatively weak situation’

The UK’s public finance has been left in a “relatively weak position” by the gradual governments, warning the OBR.

It convicted the Kovid epidemic and the “major tremor of the energy crisis” in view of Vladimir Putin’s invasion of Ukraine for the scale of increase in debt since 2010.

But also stated that attempts to return public finance to more sustainable legs have “met only with limited and temporary success in recent years”.

This said that the loan continues to increase as the gradual governments have reversed the growth by employing and left the cut in public spending, pointing to the recent U-turn of Sir Keir.

Climate Change for Slash GDP

OBR also highlighted the threat of climate change in the UK economy, warning that it was a “significant risk” for GDP.

The Watchdog stated that the cost of reducing the impact of climate change, the repair of the damage caused by it and the adapt to the new weather extremes were likely to affect all government expenses and wider economy.

“There is a growing possibility of more serious impacts of climate change on economies”, as OBR said, as is now responsible for “the effects of high rainfall and temperature variability” in the latest analysis.

As a result, OBR has updated its estimates for economic damage caused by climate change in its best case scenario – 2C of warming – and its worst position, increase of 3C.

In the event of 2C warming, GDP may fall by 3.3 percent by 2060, Watchdog said, and 7.8 percent by 2060 in the 3C scenario.

State pension triple lock

The OBR stated that the cost of the state pension triple lock is three times higher by the end of the decade than its original estimate.

It said that the cost of state pension has “increased continuously in the last eight decades”, in the mid -20th century, about 2 percent of the GDP to the current 5 percent GDP or £ 138bn of the 20th century, and in the early 2070s, it is estimated to increase by 7.7 percent of GDP in GDP in the early 2070s.

The triple-lock guarantee, which was first implemented in 2011, means that the state pension increases from the highest to year from the highest measures. These are:

Demographic changes – According to OBR, long -living, healthy life – and triple lock up -venting mechanisms are one of the continuous growth of drivers.

It states: “Due to inflation and earning instability in its first two decades in operation, the cost of triple lock has cost about three times higher than the early expectations.” The state pension is expected to cost an additional £ 15.5bn per year by the end of the triple lock.

Unprecedented debt pile

In one of the most warnings in the report, OBR said Britain pressure Ageing PopulationIncreased health care costs and other age-related expenses will increase government loans to unprecedented levels.

OBR said borrowing would exceed 20 percent of the economy size, while GDP is expected to exceed 270 percent in the early 2070s.

Inability to respond to future shock

The OBR stated that the support of Britain through Covid and energy crisis after Russia’s invasion in Ukraine was relatively generous compared to advanced economies. And it cited the shock as the loan pile has increased so much due to this reason.

But it warned that, as a result, Britain’s ability to respond to future shaking has disappeared to a great extent.

OBR said, “The government has left a very few margins against its objectives of restoring the current budget and to receive pure financial liabilities by the end of the decade,” said OBR.

But it warned that, despite the pressure on public finance, the public’s expectation is increasing.

Trump and growing tension worldwide

The OBR stated that its final report is one of the biggest growth in risk since rising to the highest level in more than a century than a century of its final report.

Also, European leaders are placed under significant pressure to increase. Defense expenditure For high levels after war.

Has been pushed through both Donald Trump Since his re -election, the challenge by the US President highlighted the scale of the challenge Chancellor,