Tuesday, 4 November 2014
UK Faces ‘Debt Timebomb’ from Ageing Population
Institute of Economic Affairs calls for radical measures, including a smaller NHS, to bring Britain’s debt mountain back to sustainable levels.
Britain’s ageing population has created a “debt timebomb” that can only be defused, according to a respected think-tank, through a combination of significant spending cuts, faster increases in the state pension age and ending universal free healthcare.
The institute of Economic Affairs warned that the government would need to cut public spending by at least 25pc in order to get Britain’s debt down to sustainable levels.
In a set of radical proposals, the Institute of Economic Affairs called on the Government to end “unhelpful” policies such as the “triple lock guarantee” that ensures the state pension increases by the higher of inflation, average earnings or a minimum of 2.5pc every year.