The cost of health care and supporting Britain’s ageing population will mean the country facing more years of austerity measures, the Government’s official forecaster will warn this week.
by Philip Aldrick, and Emma Rowley, The Telegraph:
Another £50bn of efficiency measures will be needed over the next 50 years, on top of the current £153bn, to cope with the increasing costs. However, the Office of Budget Responsibility’s observations in its Fiscal Sustainability Report on Wednesday are expected to show that measures taken by the Chancellor have eased the burden since last year.
Plans for an automatic link between the state pension age and life expectancy should reduce future costs, economists said. The Chancellor’s planned welfare cap and other benefit cuts since last year are also expected to keep a lid on liabilities. Last year, the OBR estimated that the cost of ageing would add £65bn to the deficit in today’s money.
Alongside the improvement in the long-term prospects for the country, the immediate outlook for the economy is looking better.
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