Britain on the brink as UK economy faces '£40bn tax hikes' to get debt under control

Starmer has warned that the fund volition beryllium 'painful' (Image: Getty)

Families successful the UK could beryllium deed with a immense £40billion successful taxation rises oregon brutal spending cuts for a decade, the Office for Budget Responsibility (OBR) has warned.

Prime Minister Sir Keir Starmer has repeatedly deed retired astatine the erstwhile Conservative authorities for leaving what helium branded a £22billion "black hole" successful the nationalist finances.

The Labour person has besides warned that the October fund volition beryllium a "painful" one with the Government forced to marque hard decisions.

Now, the OBR says that radical surviving longer but successful mediocre health, interest rate rises, and net-zero clime targets volition pb to economical challenges successful the future.

The autarkic forecaster says indebtedness volition emergence to astir 3 times GDP by 2071.

The UK system stagnated successful June and July (Image: Getty)

The OBR adds that the request to summation defence spending owed to the warfare successful Ukraine could adhd to the economical hardship.

It would instrumentality £40billion successful taxation rises oregon spending cuts for 10 years to get indebtedness backmost to pre-Covid levels, the OBR claims.

Chief Secretary to the Treasury Darren Jones said: “It has laid bare the shocking authorities nationalist finances were near successful by the erstwhile government.”

But Shadow Treasury Minister Gareth Davies claimed Labour "are fabricating a communicative to marque mode for reckless taxation rises.”

Mr Starmer has hinged overmuch of his economical readying connected expanding maturation successful the UK.

Reeves says she wants to 'fix the foundations of our economy' (Image: Getty)

However, figures from the Office for National Statistics (ONS) showed this week that the UK system flatlined successful July.

This was the 2nd period successful a enactment that the system saw nary growth, contempt the information economists were anticipating a recovery.

In effect to the news, Chancellor Rachel Reeves said: "I americium nether nary illusion astir the standard of the situation we look and I volition beryllium honorable with the British radical that alteration volition not hap overnight. Two-quarters of affirmative economical maturation does not marque up for 14 years of stagnation.

"That is wherefore we are taking the semipermanent decisions present to hole the foundations of our economy."