Britain's ‘unsustainable’ could reach 320% of GDP in 50 years
Britain's ‘unsustainable’ co...
Subscribe to Newsletter

Britain's ‘unsustainable’ could reach 320% of GDP in 50 years

7 July 2022
2329
1 min.
2
Britain's ‘unsustainable’ could reach 320% of GDP in 50 years

Britain's GDP in the future

UK public debt could reach 320% of GDP in 50 years, up from the current 96%. This is according to a report circulated by the Office for Budget Responsibility (OBR) on Thursday.

The United Kingdom's debt burden will increase because of falling income due to the decarbonisation of the economy, as well as rising costs caused by an ageing population. To cope with the rising level of public debt and return to the pre-pandemic level of 75% of GDP, the government needs to raise taxes or cut spending by 1.5% of GDP, experts say.

In 2022, the British cabinet allocated 1.25% of GDP to help citizens cope with the rising cost of living.

Analysts said if the authorities continue to provide similar support to the population and energy prices remain high, government borrowing could rise by £40 billion (about $48 billion) between 2023 and 2024.

Richard Hughes, chairman of the OBR, said Britain's debt burden has increased by £1 trillion compared with forecasts 20 years ago after a series of economic shocks, and there is no reason to believe this will stop.

Moreover, Richard Hughes said it is clear that governments should consider increasing defence spending now that the geopolitical and economic outlook is becoming increasingly uncertain. He said this means that the need to protect public finances is likely to require more trade-offs.

The British government has previously unveiled a plan for a "green industrial revolution" that would involve spending £12 billion to achieve the ambitious goal of zero manmade greenhouse gas emissions by 2050.

What's more, the kingdom is expected to switch gradually to a way of producing and living that will steadily reduce its carbon footprint.

Persons1 and Companies1 in the news

Chairman at Office for Budget Responsibility (OBR)
1 place
Section:
Source foto:
pixabay.com
Rating companies

ENGLAND NEWS


News GlobalEng.biz -this is the latest and most up-to-date information about the resonant events that have occurred in the region. The task of the resource's news feed is to convey to readers information about important events in business, politics, economics, healthcare, culture and other spheres of life in England with maximum accuracy and objectivity.
News GlobalEng.biz - this is coverage of the economic processes taking place in England, the latest news of public life, incidents and an overview of political events. English news is information about the activities of small and medium-sized businesses, the work of housing and communal services, the implementation of significant projects. The site's journalists describe not only the life of the region, but also talk about the current state of the English economy. Everything you need to know about innovations in the field of industry and agriculture, economy and government is collected in the "News" section on GlobalEng.biz.
News of England promptly informs the reader, shows the real picture and opens up topical topics. Communication with government structures and business gives us the opportunity to provide our readers with reliable, information-rich material.
The main page of the portal contains the key news of England!
Alena Potapova

Development Director
Population
8124984583
Died this year
22712661
Born this year
55877166