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

The Chancellor has been warned by the Office for Budget of Responsibility the latest U-turns on spending cuts has left the UK more vulnerable.

The OBR also warned that the UK will be left vulnerable to be able to respond to future crises as Britain’s debt to gross domestic product (GDP) ratio will soar from 100% on Tuesday to 270% by the 2070s.

The OBR has hit out at successive governments warning that efforts to place the UK’s finances on to a stable footing has “been met with only limited and temporary success.”

Rachel Reeves has come under fire over her Budgets and U-turns on the winter fuel and welfare reforms.

The OBR said, “But in the aftermath of the shocks, debt has also continued to rise and borrowing remained elevated because governments have reversed plans to consolidate the public finances.”

“Planned tax rises have been reversed, and, more significantly, planned spending reductions have been abandoned.”

Failures by the government has left them unable to respond to any shocks or crises in the future should there be another recession.

A Treasury spokesperson said, “We recognise the longstanding economic realities the OBR sets out in its report.”

“This is why we are committed to ensuring stability in the economy through our non-negotiable fiscal rules which have allowed us to invest in the UK to drive a decade of renewal and put more money in people’s pockets.”

Prof Stephen Millard, NIESR Interim Director said,  “The OBR’s ‘Fiscal Risks and Sustainability Report’ has highlighted yet again the vulnerability of UK Public Finances.

With more investment required to achieve the transition to net zero and provide the infrastructure needed for the economy to grow, not to mention the increased pressure on health care and other public services and the need to spend more on defence, the government will need to raise taxes to cover these soaring spending needs.

If it does not, then, with demographic changes acting to reduce the tax base and increase pension and health care costs, the debt to GDP ratio is likely to rise to unsustainable levels.”