The OECD report indicates that 'significant action is needed to stabilise public debt over the longer term' amid rising pressures from healthcare and pension costs.
The report highlights the necessity to reform the pension triple lock, suggesting pensions should be tied to an average of inflation and wage growth, rather than the highest of 2.5%, inflation, or pay growth.
As noted in the report, the UK's existing fiscal struggles are compounded by 'high debt, rising interest payments, and sluggish economic growth,' which increase borrowing costs significantly.
Rachel Reeves is set to confront around £22 billion of government overspending in her forthcoming budget address, with potential tax hikes being weighed as options.
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