09 Jul 2026
The Office for Budget Responsibility (OBR) has warned that, to stop debt from 'spiralling out of control', the UK needs extra tax rises or spending cuts equivalent to the education budget in the next decade.
In a new report, the OBR reviewed the long-term sustainability of the UK's public finances and found that government debt could move onto a 'unsustainable and ever-rising path'.
Rising healthcare spending and an aging population are responsible for the high debt level, the OBR said. Existing plans will not be enough to stop debt rising, it added.
The OBR recommended raising taxes or implementing spending cuts in order to help stop debt from spiralling.
Commenting on the report, David Bharier, Deputy Director of Economics and Insight at the British Chambers of Commerce (BCC), said: 'The OBR has starkly laid out the maths. The UK's fiscal options are narrowing with debt on track to reach 300% of GDP by 2075.
'The issues are obvious with interest payments already the third-biggest line of expenditure, and an ageing population set to increase the pressure on services.
'The OBR itself warns that further tax rises carry worsening trade-offs. Only sustainably higher productivity can provide an off-ramp.'