Rachel Reeves issued a warning by the OBR over the government’s latest U-turns

Why the UK Is Fumbling Into a Debt‑Donut

The Office for Budget Responsibility (OBR) delivered a blunt kill‑shot yesterday: the country’s revolving door of spending cuts is sucking the UK dry and leaving it skittish for whatever crisis comes next.

The Rising Debt Rocket

Debt‑to‑GDP ratio climbs from 100% on Tuesday to a daunting 270% by the 2070s.
Annual reversals of planned tax hikes—plus the tossing out of promised spending trims—are punching holes in the fiscal net.
Borrowing stays high as governments scramble to claw back earlier consolidation plans.

In short, the OBR says the government’s latest U‑turns have left the nation unable to ride out future recessions or unexpected shocks.

Responses from Quasi‑Senate Patrons

Rachel Reeves —the Labour finance minister—has taken a whiff of heat over her “victory‑lap” budget bounces that overturned winter fuel cut and welfare reforms. Meanwhile the Treasury is quick about brushing off: “We know the long‑term realities the OBR lists out. That’s why we’re committed to the hard‑core fiscal rules that let us invest, reboot the economy, and put more money in people’s pockets.”

A Cry from the Research Fraternity

Prof. Stephen Millard of NIESR (an economic think‑tank) said, “The OBR’s Fiscal Risks Report is a stark reminder of how feeble UK public finances are. We still need a ton of money to hit net‑zero, build the new infrastructure, lift health services, and keep the screws of defence secure. If the government doesn’t hike taxes to meet these spending demands—especially with a shrinking tax base and rising pension and health costs—debt will spiral into unsustainability.”