29

Multiple economic shocks and demographic pressures strain UK public finances, risking unsustainable debt.

Conclusion
The WGA highlights the succession of economic shocks that the UK has been affected by in recent years, straining public finances.64 The accounts detail several specific risks to the UK’s public finances going forward. These include costs of resolving, mitigating and adapting for climate change damage, including flooding and coastal erosion. Additionally, health spending is expected to increase in future years, resulting in an increase to public sector debt. Demographic pressures and geopolitical pressures are also expected to pressure public finances in the next fifty years putting the UK’s public debt on an unsustainable trajectory, on the basis of policy at the Spring budget in March 2024 and in the absence of policy action to mitigate the rise in debt.65 60 Q 14 61 WGA0003; WGA 2022–23 p244 62 Q 68 63 Q 68 64 WGA 2022–23 p37 65 WGA 2022–23 p37 17
Government Response

A response document is linked to this report, dated 16 May 2025. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.5 yrs
Report published 19 Mar 2025