The UK's public finances are on a "very risky footing" after a series of shocks, the Office for Budget Responsibility (OBR) has warned.
The OBR's latest forecasts show that the UK's budget deficit is set to reach £102 billion in 2023-24, up from £99 billion in the previous year. This is the highest level of borrowing since the early 1990s.
The OBR's warning comes as the UK economy faces a number of challenges, including the cost-of-living crisis, the war in Ukraine, and the ongoing COVID-19 pandemic.
— state pension costs to rise by £23 billion by 2027-8
— EVs to take £13bn a year from Treasury in lost fuel duties by 2030
— net zero shift may cost £17bn a year
— UK public debt on an “unsustainable path” soaring to more than 300% of gross domestic product by 2072-73
— Stopping debt rising above 100% of GDP will require tax rises and spending cuts of 4.4% of GDP in 2028-29
The OBR said that the government's tax and spending plans are "not enough" to address these challenges. It called for "urgent action" to reduce the deficit and bring public finances under control.
The OBR's warning is a major blow to the government, which has been hoping to reduce the deficit in the coming years. The government's plans to raise taxes and cut spending are likely to be met with resistance from businesses and unions.
The OBR's warning also raises questions about the UK's economic future. The UK is already facing a number of challenges, and the OBR's warning suggests that these challenges are likely to get worse in the coming years.
If the government does not take action to reduce the deficit, the UK's public finances could become even more precarious. This could lead to higher taxes, lower spending on public services, and a weaker economy.
The OBR's warning is a wake-up call for the government. It is clear that the UK's public finances are in a very risky position. The government needs to take urgent action to address this challenge, or the UK's economic future could be in jeopardy.
What does this mean for you?
The OBR's warning means that you can expect to see higher taxes and lower spending on public services in the coming years. This could have a significant impact on your finances, and you should start planning for these changes now.
You should also be aware of the risks to the UK economy. The OBR's warning suggests that the UK economy could be in for a rocky ride in the coming years. This could lead to job losses, lower wages, and a decline in living standards.
What should the government do?
Ditch the net zero bollocks immediately!
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