The UK's economy is exposed to 'potentially catastrophic' threats from climate change, pandemics and cyberattacks after Covid and the credit crunch piled up a £2trillion debt mountain, a government watchdog warned today.
A chilling report from the Office for Budget Responsibility has highlighted the dangers the country faces as it emerges from the 'largest peacetime economic and fiscal shock in three centuries'.Insurance Loans Mortgage Attorney Credit Lawyer
It pointed out that the 2008 crisis and the response to Covid had put the UK further into the red than previous recessions. And worryingly it stressed that such episodes seem to be getting more frequent.
Although the OBR still expects the economy to recover to pre-pandemic levels by the middle of next year, there is set to be a 3 per cent permanent hit.
Rising inflation and the possibility that interest rate increases will be needed to rein it in could put the the UK's debt pile under yet more pressure.
Rising wage costs could also see the Government hit with a £3billion bill from Boris Johnson's 'triple lock' pledge on the state pension.
Rishi Sunak is trying to keep the UK finances on track after coronavirus wreaked havoc
Worryingly the OBR suggested that major risk events seem to be getting more frequent
The OBR pointed out that the scale and profile of the government's debt had left it vulnerable to interest rate movesInsurance Loans Mortgage Attorney Credit Lawyer