Public finances on ‘unsustainable path’, OBR warns

The UK’s public finances are on “an unsustainable path”, the Office for Budget Responsibility has said. In a long-planned report, the government’s independent fiscal watchdog said on Thursday that geopolitical tensions and the energy crisis highlighted emerging risks to the public finances in addition to existing pressures from an ageing population. In what will be seen as a blow to some candidates to be the next prime minister – almost all of whom have called for lower taxes – the OBR praised the tax rises overseen by former chancellor Rishi Sunak. It said this had protected the UK’s fiscal position for the next 20 years or so from being dented by the Covid-19 pandemic. However, the OBR concluded that, even with improved projections, the UK’s public debt trajectory was unsustainable. The FT (£)