Fast-rising borrowing costs leave UK public finances at great risk, warns OBR

Gloomy report says failure to tackle inflation puts UK debt at unsustainable level with interest costs rising at twice pace of G7 rivals

The UK’s public finances are in a “very risky period” after a series of major shocks that have driven the nation’s borrowing costs to rise at the fastest rate in the G7, the Treasury’s tax and spending watchdog has warned.

The independent Office for Budget Responsibility warned national debt could surge to more than 300% of gross domestic product (GDP) by the 2070s, up from about 100% today, and warned the government is not taking measures to make big changes in the short term.