UK public debt may reach 270% of GDP in 50 Years – OBR

The Office for Budget Responsibility (OBR) has warned that UK public debt could nearly triple to over 270 per cent of GDP in 50 years unless the government addresses rising health costs and revives productivity growth.

The OBR’s latest report highlights that increased health spending, driven by an ageing population, will be the primary factor in this dramatic rise.

Current projections show health spending will almost double to 14.5 per cent of GDP, contributing significantly to the debt surge.

The OBR notes that without intervention, such as improving population health and boosting productivity, debt will remain on an unsustainable trajectory.

Chancellor Rachel Reeves faces a challenge in her upcoming budget to address a £22 billion fiscal shortfall.

The report underscores the need for economic growth and fiscal tightening to manage debt levels, as the UK already struggles with debt close to 100 per cent of GDP.

The Labour government has committed to increasing GDP growth to 2.5 per cent annually, aiming to counterbalance the mounting financial pressures.