Rachel Reeves issued a warning by the OBR over the government's latest U-turns - London Business News | Londonlovesbusiness.com
Briefly

The Office for Budget Responsibility has warned the Chancellor that the latest U-turns on spending cuts will leave the UK more vulnerable to future crises. The UK's debt to GDP ratio is projected to rise from 100% to 270% by the 2070s. Previous attempts to stabilize UK finances have met limited success. The OBR noted that debt has risen, and borrowing remains elevated due to the government reversing plans for fiscal consolidation. Abandoning planned tax rises and spending reductions has hindered the government's ability to respond to potential future recessions.
The Office for Budget of Responsibility warned that the UK will be left vulnerable to respond to future crises as Britain's debt to GDP ratio will soar from 100% on Tuesday to 270% by the 2070s.
Efforts to place the UK's finances on a stable footing have been met with only limited and temporary success according to the OBR.
In the aftermath of the shocks, debt has continued to rise and borrowing remained elevated because governments have reversed plans to consolidate the public finances.
Planned tax rises have been reversed, and more significantly, planned spending reductions have been abandoned, leaving the government unable to respond to future shocks.
Read at London Business News | Londonlovesbusiness.com
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