Ageing UK population will increase strain on public spending, OBR warns

Office for Budget Responsibility says that national debt would come down from its current 80% of GDP to 54% by the early 2030s and then start rising again

The financial cost of Britain's ageing population will require a fresh 20bn wave of spending cuts or tax increases from 2020 to bring the national debt back to pre-recession levels in 50 years time, the government's public finances watchdog has said.

Long-term projections by the Office for Budget Responsibility show that the second round of austerity due to be detailed by George Osborne in next month's budget will not be sufficient to reduce debt to 40% of national income - its level before the economy entered its deepest postwar slump.

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