Britain’s economy would face a “juddering explosion” if the Government remains on its current debt path, the Office for Budget Responsibility (OBR) has warned.
Professor David Miles, a member of the OBR’s Budget Responsibility Committee, said projections on the public finances were “very worrying indeed”, warning that at current levels the ratio of debt to GDP would eventually surpass 300pc.
It comes as Rachel Reeves faces mounting scrutiny over the state of the public finances following her Budget plans last month, which the OBR has warned will push up government borrowing further.
Prof Miles told the House of Lords economic affairs committee: “We do show pictures that are very worrying indeed about our long-term fiscal sustainability.
“Indeed, we’ve argued for a few years now that on current tax and spending settings, the UK is almost certainly on an unsustainable path.
“And indeed we show projections on the stock of debt to GDP rising, several decades down the road, to something approaching 300pc.
“That’s not a forecast. That couldn’t happen because there’d be some juddering explosion some way down the road if you were on that path.”