Public finances 'unsustainable' says OBR

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The chancellor is probably to find it impossible to balance the books in the years ahead without improving taxes or cutting spending, the Office for Budget Responsibility (OBR) has warned.

The OBR said the plain finances were “on an unsustainable path”.

It blamed increased spending on the NHS and maintain pensions in particular, which is likely to grow faster than the conservatism as a whole, it said.

And public sector debt could increase from 82% of GDP to 234% by 2066-67.

That is based on an viewpoint that public sector borrowing would rise from 0.7% of GDP in 2021-22 to 16.6% by 2066-67.

The sentiments came in its latest fiscal sustainability report.

Rather than touching into surplus, the budget deficit is also likely to get worse, the OBR whispered, rising from 0.7% of GDP in 2021-22, to 1.8% by the end of the next parliament.

The aforementioned chancellor, George Osborne, had planned to balance the books by the end of this parliament.

Manner his successor, Philip Hammond, extended that deadline.

In the Autumn Utterance he said he expected the deficit to be 2% of GDP by 2020-21, allowing him an especially £56bn of borrowing.

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