"Factoring in a stylised estimate of the asymmetric costs associated with inevitable periodic shocks would push debt up to 100 per cent of GDP by 2047-48 and nearly 320 per cent of GDP in 50 years," the agency said in a statement, adding that even without successive economic shocks, the debt will reach 267% of GDP in 50 years.
In addition, if the UK increases spending on the defense industry from 2% to 3%, experiences a major cyberattack, and enters a global trade war, then the debt could reach 430% of GDP in 2071-72, the statement read.
"Bringing debt back to 75 per cent of GDP – the level at which it stabilised in the Government’s pre-pandemic March 2020 Budget – would need taxes to rise, spending to fall, or a combination of both, amounting to a 1.5 per cent of GDP additional tightening (£37 billion a year in today’s terms) at the beginning of each decade over the next 50 years," the statement added.
In June, UK inflation rose to 9.1%, the highest figure in the last 40 years, according to the Office for National Statistics.