Britain's public finances face bleak future of debt, watchdog warns

Public finances on a 'very risky' footing after a series of shocks including the covid pandemic, the war in Ukraine and soaring interest rates

British prime minister Rishi Sunak’s government is under pressure, with voters demanding improvements in strained services, such as in healthcare, at a time when the public finances are already stretched.

Britain’s public finances are on an unsustainable path and rapidly deteriorating, the UK Treasury’s fiscal watchdog said in a report that highlighted multi-billion-pound demands for spending on defence, climate and health.

The Office for Budget Responsibility said in its fiscal risks report that British public debt will soar to more than 300% of gross domestic product by 2072-73, a scenario deemed “optimistic” given the threat of future shocks.