Events Channel

The UK's fiscal challenge - Paul Johnson

ieaTV caught up with the Institute for Fiscal Studies’ Paul Johnson to discuss the government’s deficit reduction plan and the longer-term outlook for the UK’s public finances. In the interview above, Johnson explains that the deficit will still be much higher than planned at the end of this Parliament at around £70 billion. The next Parliament will need to see further fiscal consolidation in the form of tens of billions of spending cuts to close the overall deficit, and all that time the scale of the UK’s national debt will continue to rise. Demographic change and an ageing population will continue to put upward pressure on health and pensions spending over the next decade without further reforms.