Warning UK finances 'not sustainable'

THE UK's state finances are on an "unsustainable" path due to a raft of public spending promises the Government "cannot afford" in the longer term, the boss of UK's official forecaster has warned.

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It came as the Office for Budget Responsibility said public finances are in a "relatively vulnerable position" amid pressure from recent U-turns on planned spending cuts.

State finances are facing "mounting risks" but recent governments have had only limited success in improving the fiscal outlook, the OBR said.

Richard Hughes, chairman of the organisation, indicated that governments will need to adjust spending plans in the longer term to avoid national debt ballooning.