LONDON (Reuters) – Britain’s price range watchdog on Tuesday outlined a gloomier image for the government’s funds in the long run, reflecting current pledges to extend well being spending with out tax hikes or spending cuts to pay for it.
The Office for Budget Responsibility (OBR) caught to its view that the general public funds are more likely to come below important stress from an growing older inhabitants.
“The long-term outlook for the public finances is less favourable than at the time of our last (fiscal sustainability report) in January 2017,” the OBR mentioned in its report.
This was “more than explained” by the government’s well being spending announcement in June.
Last month Prime Minister Theresa May introduced a four billion pound enhance for the National Health Services, to be funded partially by a “Brexit dividend” that the Institute for Fiscal Studies says doesn’t exist.
Finance minister Philip Hammond has indicated that taxpayers might want to foot a few of the invoice.