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Fiscal Risks and Sustainability Report 2025
08 July 2025
Type
Written Ministerial Statement
Department
Treasury
At a Glance
Issue Summary
The statement addresses the release of the Office for Budget Responsibility's (OBR) Fiscal Risks and Sustainability Report 2025, which examines fiscal risks related to climate change, public sector balance sheet, and pensions.
Action Requested
The government has committed to increasing spending on defence, investing in clean energy initiatives, allocating funding for flood defences, and adjusting the maturity split of gilt issuance. Further details will be set out in upcoming documents such as the updated Carbon Budget and Growth Delivery Plan.
Key Facts
- The OBR's report fulfils its obligation under the Charter for Budget Responsibility to examine fiscal risks.
- SR 2025 allocates £9.4 billion for Carbon Capture, Usage, and Storage and more than £8.3 billion for homegrown clean power through Great British Energy and Great British Energy-Nuclear over five years.
- The government will invest more than £4.2 billion over three years from 2026-27 to 2028-29 in building and maintaining flood defences.
- National security spending is set to increase to 2.6% from 2027, funded by reductions in the Official Development Assistance (ODA) budget.
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