Energy prices and an ageing population risk more pressure on the economy, a report warns.
In its fiscal risks and sustainability report, the OBR said the government had already spent as much this year, 1.25% of GDP, to help households cope with the cost-of-living crisis as it did supporting the economy through the 2008 financial crisis.
The government has pledged to ban the sale of new petrol and diesel-powered cars from 2030. Fuel duties are currently a big source of tax revenue. Growth is assumed to be smaller, as the economy is less productive. Long-standing demographic challenges that will raise spending and old age dependency, have become worse, says the OBR, leading to government spending being concentrated on the NHS, social care and pensions payments and other areas of spending being squeezed.
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