OBR warns 'unsustainable' public debt set to reach 274% of GDP by late 2030s

Amid Budget Responsibility Act passing

Government debt has been forecast to rise rapidly by the end of the next decade as a result of stagnant productivity and increasing public spending.

In the Office for Budget Responsibility's Fiscal risks and sustainability report published today (12 September), the body warned that current debt projections are on an "unsustainable path", with debt predicted to reach 274% of GDP by the late 2030s. When "further shocks and pressures" are taken into account, OBR projections have debt eclipsing the 300% threshold, a figure that would require the government to "take mitigating policy action to prevent this debt spiral from occurring".  Budget Responsibility Bill receives Royal Assent The government body, which was recently granted a...