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The UK’s national debt could hit 300% of GDP by the 2070s because of the string of major challenges still facing national governments after a “rapid succession of shocks”, according to a report for the Treasury.

The independent Office for Budget Responsibility (OBR) laid out how climate change, defence and the fact people are living longer all posed significant, and current, risks at a time when the public finances are already reeling from COVID, cost of living support and higher interest rates.

The national debt hit a 60-year high of £2.56trn in May – equivalent to 100% of national GDP for a year.

The OBR’s fiscal risks and sustainability report stated that the government’s plans for stabilising and then reducing debt as a share of national output were relatively modest by historical and international standards.

That was despite a previous warning from the watchdog, in March, that the UK’s tax burden was on course to hit the highest level since the Second World War by 2027/8.

Its conclusions also stated that as the baby boomer cohort retires and pushes up the cost of the so-called triple lock, state pension spending was expected to be £23bn higher in 2027/8 than at the start of the decade.

It also warned that rising take-up of electric vehicles was expected to cost £13bn a year in lost fuel duty by 2030.

The report, which looks at the long term risks, highlighted a number of immediate financial burdens including a projection that the hit from record long-term sickness in the workforce will cost the state a further £6.8bn this year in benefit payments.

It all makes for grim reading in Number 11 Downing St as the chancellor seeks an opportunity to deliver some goodies to the public ahead of the next election.

That prospect is looking more elusive by the day.

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Hunt sets out plan to cut inflation

The OBR’s findings were delivered just hours after the latest grim set of statistics covering the economy, with official figures for May showing a contraction for gross domestic product (GDP) of 0.1%.

Perversely, a flatlining economy is actually and temporarily good news for the government and Bank of England as both seek to bring down stubbornly high inflation.

Weaker demand in reaction to rising interest rates is what Bank policymakers are looking for before they can halt the tightening cycle that has resulted in 13 consecutive increases in Bank rate to date.

Rising interest rates, and market expectations for rates, are bad news for the taxpayer as well as wider borrowers, such as mortgage holders, because they have forced up borrowing costs.

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“He talks about balancing the books, but his party crashed the economy”

Yields, the implied interest rate, on core 10-year UK government bonds hit 2008 financial crisis levels earlier this month.

Many UK IOUs are linked to inflation, making the cost of servicing the existing debt pile worse.

The OBR’s report said: “The 2020s are turning out to be a very risky era for the public finances.

“In just three years, they have been hit by the COVID pandemic in early 2020, the energy and cost-of-living crisis from mid-2021, and the sudden interest rate rises in 2022, whose consequences continue to unfold.

“This rapid succession of shocks has delivered the deepest recession in three centuries, the sharpest rise in energy prices since the 1970s, and the steepest sustained rise in borrowing costs since the 1990s.

“And they have pushed government borrowing to its highest level since the mid-1940s, the stock of government debt to its highest level since the early 1960s, and the cost of servicing that debt to its highest since the late 1980s.”

Chancellor Jeremy Hunt responded: “In common with many advanced economies, the UK’s level of debt remains elevated following recent global shocks, including the pandemic and energy prices.

“This highlights why it is important to deliver on the Prime Minister’s priority to get debt falling and to control borrowing to avoid adding inflationary pressures and risk prolonging higher inflation.

“That means taking difficult but responsible decisions on the public finances, including public sector pay, because more borrowing is itself inflationary.”

Shadow chancellor Rachel Reeves said: “This report shows just how far we are falling behind our peers, how exposed our economy is, and again highlights that the government is failing to take action in areas like energy security to help get bills down.”

She added: “It’s time for them to step aside and let Labour restore our national economic and financial security, driven by our mission to secure the highest sustained growth in the G7.”

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COVID-19 report goes a long way to answering inquiry’s critics

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COVID-19 report goes a long way to answering inquiry's critics

This scathing report goes a long way to answer the UK COVID-19 Inquiry’s critics, who have consistently attacked it as a costly waste of time.

They tried to undermine inquiry chair Lady Hallet’s attempt to understand what went wrong and how we might do better, and portray it as a lame exercise that would achieve very little.

Well, we now know that Boris Johnson’s “toxic and chaotic” government could well have prevented at least 23,000 deaths had they acted sooner and with greater urgency.

Follow latest: All four UK governments ‘failed to appreciate’ scale of COVID pandemic threat

File Pic: PA
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File Pic: PA

The response was “too little, too late”. And nobody in power truly understood the scale of the emerging threat or the urgency of the response it required.

The grieving families who lost loved ones in the pandemic want answers. They want names. And they want accountability.

But that is beyond the remit of this inquiry.

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Read more:
‘Toxic and chaotic culture’ at centre of UK government during the pandemic
A timeline of the UK’s response to the pandemic

Everything you need to know about the COVID inquiry

The publication of the report into Module 2 of the inquiry will bring them no comfort, it may even cause them more distress.

But it will bring them closer to understanding why the UK’s response to this unprecedented health crisis was so poor.

Copies of the UK COVID-19 Inquiry's findings into decisions made by former prime minister Boris Johnson and his advisers. Pic: PA
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Copies of the UK COVID-19 Inquiry’s findings into decisions made by former prime minister Boris Johnson and his advisers. Pic: PA

We can easily identify the “advisers and ministers whose alleged rule breaking caused huge distress and undermined public confidence”.

And we know who was in charge of the Department of Health and Social Care as it misled the public by giving the impression that the UK was well prepared for the pandemic when it clearly was not.

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All four UK governments ‘failed to appreciate’ scale of COVID pandemic threat – inquiry finds

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All four UK governments 'failed to appreciate' scale of COVID pandemic threat - inquiry finds

All four UK governments failed to appreciate the scale of the threat posed by COVID-19 or the urgency of the response the pandemic required, a damning report published on Thursday has claimed.

Baroness Heather Hallett, the chair of the inquiry, described the response to the pandemic as “too little, too late”.

Tens of thousands of lives could have been saved during the first wave of COVID-19 had a mandatory lockdown been introduced a week earlier, the inquiry also found.

Noting how a “lack of urgency” made a mandatory lockdown “inevitable”, the report references modelling data to claim there could have been 23,000 fewer deaths during the first wave in England had it been introduced a week earlier.

The UK government first introduced advisory restrictions on 16 March 2020, including self-isolation, household quarantine and social distancing.

Had these measures been introduced sooner, the report states, the mandatory lockdown which followed from 23 March might not have been necessary at all.

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All four UK govts ‘failed to appreciate’ scale of pandemic

COVID-19 first emerged in the Chinese city of Wuhan at the end of 2019, and as it developed into a worldwide pandemic, the UK went in and out of unprecedented lockdown measures for two years starting from March 2020.

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Lady Hallett admitted in her summary that politicians in the government and devolved administrations were forced to make decisions where “there was often no right answer or good outcome”.

“Nonetheless,” she said, “I can summarise my findings of the response as ‘too little, too late'”.

Report goes long way to answer inquiry’s critics

This scathing report goes a long way to answer the Covid 19 Inquiry’s critics who have consistently attacked it as a costly waste of time.

They tried to undermine Lady Hallet’s attempt to understand what went wrong and how we might do better as a lame exercise that would achieve very little.

Well, we now know that Boris Johnson’s “toxic and chaotic” government could well have prevented at least 23,000 deaths had they acted sooner and with greater urgency.

The response was “too little, too late”. And that nobody in power truly understood the scale of the emerging threat or the urgency of the response it required.

The grieving families who lost loved ones in the pandemic want answers. They want names. And they want accountability.

But that is beyond the remit of this Inquiry.

The publication of the report into Module 2 will bring them no comfort, it may even cause them more distress but it will bring them closer to understanding why the UK’s response to this unprecedented health crisis was so poor.

And we can easily identify the “advisors and ministers whose alleged rule breaking caused huge distress and undermined public confidence”.

Or who was in charge of the Department of Health and Social Care, as it misled the public by giving the impression that the UK was well prepared for the pandemic when it clearly was not.

‘Toxic culture’ at the heart of UK government

The report said there was “a toxic and chaotic culture” at the heart of the UK government during the pandemic.

The inquiry heard evidence about the “destabilising behaviour of a number of individuals” – including former No 10 adviser Dominic Cummings.

It said that by failing to tackle this chaotic culture – “and, at times, actively encouraging it” – former PM Boris Johnson “reinforced a culture in which the loudest voices prevailed and the views of other colleagues, particularly women, often went ignored, to the detriment of good decision-making”.

‘Misleading assurances’

The inquiry found all four governments in England, Scotland, Wales and Northern Ireland failed to understand the urgency of response the pandemic demanded in the early part of 2020.

The report reads: “This was compounded, in part, by misleading assurances from the Department of Health and Social Care and the widely held view that the UK was well prepared for a pandemic.”

The report notes how the UK government took a “high risk” when it significantly eased restrictions in England in July 2020 – “despite scientific advisers’ concerns about the public health risks of doing so”.

Lady Hallett has made 19 key recommendations which, if followed, she believes will better protect the UK in any future pandemic and improve decision-making in a crisis.

Repeated failings ‘inexcusable’

In a statement following the publication of Thursday’s report, Lady Hallett said there was a “serious failure” by all four governments to appreciate the level of “risk and calamity” facing the UK.

She said: “The tempo of the response should have been increased. It was not. February 2020 was a lost month.”

Read more:
A timeline of the UK’s response to the pandemic

Lady Hallett said the inquiry does not advocate for national lockdowns, which she said should have been avoided if at all possible.

She said: “But to avoid them, governments must take timely and decisive action to control a spreading virus. The four governments of the UK did not.”

Lady Hallett said none of the governments were adequately prepared for the challenges and risks that a lockdown presented, and that many of the same failings were repeated later in 2020, which she said was “inexcusable”.

She added: “Each government had ample warning that the prevalence of the virus was increasing and would continue to do so into the winter months. Yet again, there was a failure to take timely and effective action.”

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Fresh weather warnings issued as parts of UK threatened with blizzard conditions

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Fresh weather warnings issued as parts of UK threatened with blizzard conditions

Fresh yellow weather warnings for ice have been issued for many areas of the UK, as some areas are threatened with blizzard conditions on Thursday.

An amber warning for snow – covering northeast England, including Scarborough, Whitby and parts south of Middlesbrough – is in force until 9pm on Thursday.

UK weather latest: Blizzard warning for amber area

The Met Office said there could be “significant snow accumulations” over the North York Moors and parts of the Yorkshire Wolds with up to 25cm (10ins) on hills above 100m (330ft).

“Gusty winds, giving occasional blizzard conditions, and perhaps a few lightning strikes, may accompany some of the showers, posing as additional hazards,” the warning added.

Some A-roads in North Yorkshire were reported to be “gridlocked”, according to Shingi Mararike, Sky News’ North of England correspondent, but he added gritters are out to deal with the bad weather.

A car overturns on the A19 near Sunderland. Pic: PA
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A car overturns on the A19 near Sunderland. Pic: PA

The Glenshane Pass in County Londonderry has been coated in snow. Pic: PA
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The Glenshane Pass in County Londonderry has been coated in snow. Pic: PA

Snowy conditions near Skipsea in the the East Riding of Yorkshire. Pic: PA
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Snowy conditions near Skipsea in the the East Riding of Yorkshire. Pic: PA

Snow ploughs have been hard at work on the North York Moors and a thick coat of snow is covering the A169 between Pickering and Whitby.

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Dozens of schools have been closed in North Yorkshire and Scotland.

Amber warning for snow in parts of northeast England and south of Middlesbrough until 9pm on Thursday. Pic: Met Office
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Amber warning for snow in parts of northeast England and south of Middlesbrough until 9pm on Thursday. Pic: Met Office

A number of yellow warnings are also in force for snow and/or ice across large parts of Britain.

In many of the warnings issued by the Met Office, there are concerns that where “showers persist and/or snow partially thaws and then refreezes overnight, this will bring a risk of ice”.

Weather warnings in the UK for snow and ice across various regions on Thursday (left) and ice on Friday (right). Pic: Met Office
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Weather warnings in the UK for snow and ice across various regions on Thursday (left) and ice on Friday (right). Pic: Met Office

Jo Wheeler, Sky’s weather presenter, said clear skies will allow temperatures to tumble again as Thursday night approaches, “with an early and severe frost expected, and the associated risk of icy stretches on untreated roads and pavements”.

Coldest night so far

Overnight Wednesday into Thursday was the coldest of the season so far, according to the Met Office.

Temperatures dropped as low as -6.6C (20F) in Benson, Oxfordshire. There were two -6.4C (20F) temperatures recorded in Wales (in Sennybrigde) and in Scotland (Dundreggan).

While in Northern Ireland it fell to -2.8C (27F) in Altnahinch Filters.

Cold health alerts in force

As well as the one amber weather warning covering parts of the UK, there are two amber health alerts in place in three areas of England from the UK’s Health Security Agency.

An amber health alert is designed to prepare health services, including for the potential for a rise in deaths among the over-65s and people with health conditions.

The alerts are in effect in North East and North West England, along with the Yorkshire and the Humber region until 8am on 22 November.

Yellow cold-health alerts are in place for the rest of England and also expire at the same point.

Walk like a penguin

NHS Greater Glasgow and Clyde (NHSGGC) is recommending that people should walk like penguins to avoid dangerous slips and trips on icy surfaces.

The technique, which went viral in previous winters, is back for 2025 as part of the health board’s winter campaign.

Laura Halcrow, falls prevention lead at NHSGGC, said: “It might look funny, but waddling really works. A slip on ice can cause painful injuries and even hospital stays, especially for older people.”

Turning wet and windy

Sky’s weather presenter, Jo Wheeler, adds that the forecast is set to change this weekend.

“We’ll trade the cold sunshine and wintry showers for wet and windy conditions with rain turning heavy as it crosses the country on Saturday.”

“The British weather, fickle as always, looks like delivering a brief change to this milder westerly flow followed by an equally quick change back to a chilly northerly flow.”

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