Families face £40billion in tax rises or spending cuts every decade to get national debt under control
FAMILIES face £40billion in tax rises or spending cuts every decade to get national debt under control, a watchdog warns.
The gloomy financial forecast is blamed on people living longer but in poorer health, rises in interest rates as well as the cost of meeting net zero climate targets.
It means the debt pile will hit nearly three times GDP — the annual value of the country’s economic activity — by 2071, according to the Office for Budget Responsibility.
Increased defence spending in an uncertain world along with severe weather from climate change could make it worse, it adds.
And getting debt back to pre-Covid levels of 85 per cent of GDP would take £40billion of tax rises or spending cuts every ten years.
At present, national debt is about the same as GDP.
But public spending will need to rise as a population set to grow to 82million in 50 years demands more services.
The OBR says just spending more is unsustainable, while improving health and boosting productivity will help most.
Chief Secretary to the Treasury Darren Jones said: “It has laid bare the shocking state public finances were left in by the previous government.”
But Shadow Treasury Minister Gareth Davies claimed Labour inherited a growing economy.
He said: “They are fabricating a narrative to make way for reckless tax rises.”