House of Commons · Written Ministerial Statement
Fiscal Risks and Sustainability Report 2024
12 September 2024 · Treasury
Proposed by Rachel Reeves Lab Leeds West and Pudsey
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Fiscal Risks and Sustainability Report 2024 from the Office for Budget Responsibility highlights long-term challenges to sustainable public finances.
- The government will respond to the report in the spring, focusing on stabilising public finances.
- The response will involve difficult budgetary decisions across spending, welfare, and tax, alongside policies to promote economic growth and stability.
Issue summary
The statement addresses the Fiscal Risks and Sustainability Report 2024 from the Office for Budget Responsibility (OBR), which highlights long-term challenges to sustainable public finances.
Action requested
The government will respond to the FRS in the spring, focusing on stabilising public finances through difficult budgetary decisions across spending, welfare, and tax, while also committing to policies that promote economic growth and stability.
Key facts
- The previous government left a projected overspend of £22 billion.
- The current government has implemented £5.5 billion in public spending savings for 2024-25.
- Had the UK grown at the OECD average rate over the last 13 years, it would have been £140 billion larger with an additional £58 billion in tax revenues.
- The OBR’s analysis shows significant costs from climate-related damage if current mitigation commitments are not met.
- Public debt is projected to reach 274% of GDP by 2073-74 under previous government policies.
- Every 0.1% increase in annual productivity growth would reduce the debt-to-GDP ratio rise by 25 percentage points.
- The Budget Responsibility Act ensures major fiscal announcements will be subject to an independent OBR assessment.
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