This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-40594347

The article has changed 5 times. There is an RSS feed of changes available.

Version 2 Version 3
Health the biggest risk to UK finances Health the biggest risk to UK finances
(about 2 hours later)
The UK's fiscal watchdog has said health costs are the biggest risk to the government's spending plans.The UK's fiscal watchdog has said health costs are the biggest risk to the government's spending plans.
The Office for Budget Responsibility's (OBR) says the UK faces the challenge of an ageing population and the high cost of technological advances.The Office for Budget Responsibility's (OBR) says the UK faces the challenge of an ageing population and the high cost of technological advances.
It also says: "Lifting current limits on public sector pay increases would pose a fiscal challenge."It also says: "Lifting current limits on public sector pay increases would pose a fiscal challenge."
But on Brexit, the OBR says a large "divorce bill" for leaving the EU would not be a big threat to UK finances.But on Brexit, the OBR says a large "divorce bill" for leaving the EU would not be a big threat to UK finances.
Instead it argues that trade agreements with the EU and other trading partners are more important for the long-term growth of the UK economy.Instead it argues that trade agreements with the EU and other trading partners are more important for the long-term growth of the UK economy.
The OBR's Fiscal Risks Report outlines a range of risks that the UK faces, and adds that the issues are complicated because the "ongoing challenges must be faced while negotiating Brexit and in an environment of 'austerity fatigue'". The OBR's first ever Fiscal Risks Report outlines a range of risks that the UK faces, and adds that the issues are complicated because the "ongoing challenges must be faced while negotiating Brexit and in an environment of 'austerity fatigue'".
The report outlines how important economic growth is to the amount of tax the country can collect. It says that over 50 years, an annual 0.1% fall in economic output would cause Britain's debt-to-GDP ratio to be 50 percentage points higher. Pay
The amount of money the Treasury collects in taxes each year also faces risks from the following factors: Chancellor of the Exchequer Philip Hammond MP said: "This is a sober analysis of the challenge we continue to face, and a stark reminder of why we must deliver on our commitment to deal with our country's debts.
Wide-ranging "The Labour party would ignore these warning signs from the OBR, adding to the bill that our younger generation will have to pay. "
The 300 page report highlights risks across a wide range of government departments, and covers everything from foreign currency exposure to cost over-runs in infrastructure projects. John McDonnell, Labour's shadow chancellor, said: "The Tories want to blame Brexit for their failures on the economy, but what this report really reveals is that one of the biggest risks to our economy is Theresa May's weak Government, and the last seven year of Tory economic failure."
In the NHS it says spending on clinical negligence claims has doubled in cash terms over the past six years and has risen by almost half over the past two. The report outlines how economic growth is central to the amount of tax the country can collect. As an example, it says that over 50 years, an annual fall of just 0.1% in economic output would cause Britain's debt-to-GDP ratio to be 50 percentage points higher.
It says that the way taxes are raised is changing as society changes. It outlines ways in which taxes are bringing less cash into the Treasury:
The OBR also examines how another crisis in the financial sector could hit the government's budget, largely because of the large contribution it makes in taxes. Finance and insurance accounts for 3% of the UK workforce but represents 7% of economic output.
The report says: "Financial crises are fiscally costly. Regulation has been tightened since the crisis, but credit-related vulnerabilities remain. And Brexit and cyber-security represent new sources of risk."
Flu and flooding
As well as dealing with the obvious threats the 300 page report highlights a range of risks that could batter the government's tax and spending plans in the coming years.
It covers everything from foreign currency exposure to cost over-runs in infrastructure projects like the HS2 high speed rail link.
For instance, it explains how NHS spending on clinical negligence claims has doubled in cash terms over the past six years and has risen by almost half over the past two.
The reports adds: "There is a risk that greater pressures on medical professionals lead to higher numbers of incidents and future claims. This type of adverse feedback seems plausible".The reports adds: "There is a risk that greater pressures on medical professionals lead to higher numbers of incidents and future claims. This type of adverse feedback seems plausible".
On the future cost of decommissioning nuclear power stations it says that estimates range from £95bn- £218bn. On the future cost of decommissioning nuclear power stations, it says that estimates range from £95- £218bn.
It says: "While the numbers are big from the perspective of the department managing them they are less so from the perspective of the public sector as a whole. That said ... the risk that annual spending rises by more than £1bn in any year is far from negligible."It says: "While the numbers are big from the perspective of the department managing them they are less so from the perspective of the public sector as a whole. That said ... the risk that annual spending rises by more than £1bn in any year is far from negligible."
And it also covers the risks of "unanticipated events" which include everything from flu pandemics to coastal flooding and widespread electricity failure.And it also covers the risks of "unanticipated events" which include everything from flu pandemics to coastal flooding and widespread electricity failure.
It says: "successive terrorist attacks have prompted debate over the funding of police and security services, while the number of tower blocks that have failed fire safety tests since the tragedy at Grenfell Tower could require significant sums to resolve".It says: "successive terrorist attacks have prompted debate over the funding of police and security services, while the number of tower blocks that have failed fire safety tests since the tragedy at Grenfell Tower could require significant sums to resolve".
Under its charter, the Office for Budget Responsibility has to produce a report on fiscal risks every two years. The Treasury has to reply to the report within a year.Under its charter, the Office for Budget Responsibility has to produce a report on fiscal risks every two years. The Treasury has to reply to the report within a year.