19Bbn in tax hikes or cuts needed to cope with ageing population Rising costs associated with the UK's ageing population means billions of pounds needs to be generated through spending cuts or tax hikes in the next six years, the Office for jimmy choo black pumps sale Budget Responsibility has warned.
Health, social care and state pension costs could force future governments to fork out an extra 61billion in today's money in 50 years' time, causing public sector debt to sky rocket to 99 per cent of Britain's economic output. More immediately, the Government needs to take the pre emptive move of finding an extra 19billion by 2018/19 if it wants debt of 40 per cent of GDP by 2062, amid cost pressures caused by British pensioners and uncertainty over revenues generated by taxation and North Sea oil and gas. Without this action, the OBR warns national debt could exceed GDP beyond 2062/63. In the short term, it expects debt to peak at 85.6 per cent of GDP in 2016, before it chimmy shoes falls to 66 per cent in the early 2030s as the economy grows. In its annual Fiscal Sustainability Report, the OBR said: 'Under our central projections, the Government would need to implement a permanent tax increase or spending cut of 13billion in 2018/19 to get debt back to 60 per cent of GDP. and 19billion to get it back to 40 per cent. 'It is clear that longer term spending pressures, if unaddressed, would put the public finances on an unsustainable path. 'Public sector net debt would approach 100 per cent of gross domestic product and still be rising.' Workers forced to take an investing gamble save half the amount of those in gold plated final salary schemes New warning that future pensions crisis will crush taxpayers as officials raise concerns over workplace scheme rip offs How can you use your pension to make sure your dependents are secure after you die? Single and joint life annuities explained Retiring soon? Get an annuity quote Get a FREE guide on how to avoid pension traps from Hargreaves Lansdown The projections follow three years of austerity measures to rein in public spending since the Coalition Government took office, with Chancellor of the jimmy choo floral heels Exchequer George Osborne announcing a further 11.5billion in departmental spending cuts just last month. Steps are already being taken to limit state pension spending projected to be worth 5.8 per cent of GDP in 2017/18 by increasing the state pension age for both men and women to 66 by 2020 and 67 by 2028. But with spending expected to increase to 8.4 per cent of GDP in 2062/63 as baby boomers retire, fertility rates fall and life expectancy continues to rise, the OBR report has prompted a call to accelerate the raising of the state pension age. Baroness Sally Greengross, chief executive of think tank the International Longevity Centre, said: 'The costs set out today are not inevitable. Increasing the average retirement age by just one extra year could bring in around 13billion or 1 per cent jimmy choo brown sandals of GDP. 'If we don't invest in the prevention of ill health, fail to significantly extend working lives and do nothing to support the voluntary contributions of older people, we could see even higher costs. 'If tomorrow's pensioners are more unhealthy than today's, with less access to preventative care, and few new health innovations, costs will be higher than predicted. 'The cost of our ageing society is not about the free TV licence or the bus pass, yet recent political debates have focussed on these issues to the exclusion of the long term challenges. 'We increasingly hear of crises in the health and care sector, whether it be pressures on acute services or care failing to meet our needs.
Without a long term plan these crises will become even more common. 'Despite the warnings set out today, Government does not have an adequate strategy to respond to the challenges posed by the Office for Budget Responsibility.'.
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