UK public debt set to nearly triple by mid-2070s – live updates from the business world

Britain’s national debt is projected to almost triple over the next 50 years according to the UK’s fiscal watchdog, the Office for Budget Responsibility. Factors contributing to this include an ageing population, climate change, and rising geopolitical tensions. Public debt is expected to rise from under 100% of GDP to over 270% of GDP by the mid-2070s. The OBR warned that without mitigating policy action, debt could reach over 300% of GDP. Governments will need to implement spending cuts or tax rises to prevent a debt spiral. The OBR suggests that tackling pressures on public finances today could lower long-term costs, such as limiting global temperature rises to less than 2°C. UK Chief Secretary to the Treasury Darren Jones criticized the former Conservative government for the high debt levels left behind. The report also highlights the impact of climate change on the UK economy, estimating a 3% reduction in real GDP in 50 years if temperature rises are kept below 2°C. Overall, the OBR’s projections serve as a warning for policymakers to take action now to prevent unsustainable debt levels in the future. Despite the challenging forecast, some measures can be taken to alleviate the debt burden, such as addressing health issues, increasing productivity, and limiting global temperature rises.

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