UK Faces Tough Choices to Prevent Unsustainable Debt, Warn Lords

A House of Lords committee urges immediate financial reforms, emphasizing the need for higher taxes or reduced public services to manage growing debt.

• A House of Lords committee warns that Britain's national debt could become unsustainable without urgent financial reforms.
• The committee suggests that the government must choose between raising taxes or reducing public services to manage the debt.
• The current rule that allows debt to rise for four years before falling in the fifth year is criticized as flawed and easily manipulated.
• The report highlights pressures from defense spending, net-zero transitions, and an aging population as key financial challenges.
• Chancellor Reeves hints at potential tax increases and stresses the need for robust fiscal rules to stabilize the economy.

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