British spending monitoring has issued little warning over public finances claiming to be “relatively vulnerable”.
In the first important evaluation since Keir Starmer has clarified two major turns to prosperity in the past month, the Budget Response Office (OBR) has warned that recent efforts to reduce the government balance sheet show only limited success.
Health examination of the economy will raise more questions about the position of Rachel Reeves’ position, which we shed in PMQs last week, because the head has failed to guarantee its future.
It was only after the markets responded to who executed the treasury that the prime minister publicly supported.
While a Yougov survey has shown that all the approved times for the government have lost 54 points – only 13 % against 67 %.
OBR said the rotation of the head of the Storm’s head in reducing profits and paying winter fuel is a constant increase in government debt.
The decision to the cave last week on labor insurgents and tearing more of the benefits of reform, especially for people with disabilities, meant that the £ 5 billion savings became a small increase.
Meanwhile, the decision to repay winter fuel to millions of retirees costs £ 1.25 billion more.
In a clear warning, the guard said that debt accounts for by the early 2070s, accounting for more than 270 percent of Britain’s total economic production.
“The growing debt candle will” make a significant erosion of the British capacity to respond to future shocks and growing pressures on public affairs, “OBR added.
Ms. Reeves is trying to fill a multibillion -dollar black hole in public finance before her second budget in the fall.
Since the forecast of the economic growth of OBR, which appears to be a result of Donald Trump’s World Trade War, the Chancellor’s supervision against his existing financial laws is also against any vulnerable reduction, which appears to be due to the fall of Donald Trump’s World Trade War.
Labor unions and labor representatives are pushing for him to introduce wealth taxes on the most rich and large companies who have won the championship by the deputy prime minister of Angela Rainer in the government.
Ms. Reeves, though resisting the demands, as well as the consultation of her former consultant Lord Jim Onil and others to break the election manifesto’s commitment to raise income tax, value added tax or national insurance for employees.
“The British public finance has emerged from a series of large global economic shocks in a relatively vulnerable position,” OBR said in a report that the bell rang in the treasury.
At the end of last year, government debt was 94 percent of GDP, the sixth highest among advanced economies in the world, while Britain faced the third cost of borrowing in the world.
OBR said recent efforts to reduce the government balance sheet have been “only a limited and temporary success” and “borrowing has increased because governments have revealed plans to integrate public finance.”
“The planned tax increase has been reversed, and significantly, the reduction of planned costs has been lost,” he said.
In the midst of the pressure of installing the House of Representatives, Kier was planning to reduce £ 5 billion from the welfare bill last week. He had earlier decided to decide to weaken winter fuel for millions of pensioners.
The result of rot rotation and reduced costs has increased to its highest level since the 1960s, with the forecast of the OBR more in the medium term.
“With the rise in economic growth and the rise in interest rates, stopping the national debt has” been challenging “,” OBR said.
OBR, as well as alerts of the luxurious status of public finance, now highlighted the dangers of the UK, which mainly increase geopolitical stresses.
The guard said Mr Trump has overseen the highest increase in global tariff rates for more than a century, while at the same time is the pressure on the head to increase defense costs as a share of GDP.
The prime minister responded with the highest increase in defense costs since the Cold War and reduced the international budget for a 2.5 percent defense by 2027.
Long -term, the guard said the pressures of the UK population, the increase in health care and other age -related costs will increase government debt to an unprecedented level.
OBR said borrowing will increase more than 20 percent of the economy, while debt candles are expected to surpass 270 % of GDP by the early 2070s.
The conservatives said the laboratory had lost “public financial control”, while the OBR report has barefoot.
“Britain now has the third premier deficit and the fourth time in Europe, and the costs of borrowing are the highest in the world,” said Chancellor Shadow.
“Under Rachel Reeves’ economic mismanagement and poor Keir Starmer’s leadership, our general finances are dangerously endangered – exposed to future shocks, welfare costs are unstable, taxes increase in high record and crippling debt interest.
“The recklessness of the workforce endangers everything – the pension, your job, your home, your savings.”
The report was also used as an opportunity by ThinkTanks Rightwing to demand a major change in economic policies.
“The government needs to be smaller and more efficient. Secondly, the government must be smaller and more efficient.
“In the case of unchanged policies, public debt is currently 270 % of national revenue over 50 years, even if productivity growth improves an average of 1.5 percent per year.
“But if the productivity growth is about 0.5 percent poor, that figure could be exploded to 647 %. It really needs to call alert.”
Among the age -related costs, OBR highlighted the government’s retirement bill, which is under pressure by the increasing number of people above the age.
The state retirement cost has “increased constantly over the past eight decades”, from about 2 percent of GDP in the mid -twentieth century to 5 % of the current GDP or £ 138 billion, and is estimated to increase to 7.7 percent of GDP in the early 2070s.
Demographic changes – more people longer, healthier life, longer life – and triple lock mechanisms are drivers for continuous increased increases, OBR reports.
“Due to inflation and income fluctuations in its first two decades, the triple lock is about three times higher than the initial expectations,” he said.
According to OBR, the lock -in lock element “in eight years from 13 years” has begun significantly more unstable than expected inflation.
“As a result, despite the suspension of the triple lock for a year during the epidemic, the triple lock is expected to cost £ 15.5 billion in 2029 annually, about three times higher than the initial expectations,” the report said.
