UK Public Finances on ‘Very Risky’ Footing After Series of Shocks, OBR Says

  • OBR identifies demands for higher spending adding to strain
  • Findings underscore limitations on Sunak’s government

UK public finances are likely to remain on a “very risky” footing after a series of shocks including a deep cost-of-living crisis.

Photographer: Jose Sarmento Matos/Bloomberg

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Britain’s public finances are on an unsustainable path and rapidly deteriorating, the Treasury’s fiscal watchdog said in a report that highlighted multi-billion-pound demands for spending on defense, climate and health.

The Office for Budget Responsibility said in its fiscal risks report that UK public debt will soar to more than 300% of gross domestic product by 2072-73, a scenario deemed “optimistic” given the threat of future shocks.