OBR fiscal risks report: Sound finances aren't just about fiscal rules, says IPPR

“It's right that the government – and Andy Burnham as the prospective new prime minister – have committed to the fiscal rules. With markets unstable and borrowing costs high, responsible borrowing gives markets the certainty they need.

“But the OBR’s report shows that sound public finances mean taking sustainability seriously over the next fifty years, not just until the next election. Ageing, climate change and weak productivity will pile pressure on the public finances for decades – and the current rules reward short-term headroom whilst penalising the very investment that would ease those pressures. The government should consider rethinking the fiscal rules in the years ahead to meet the long-term challenges we face.”