Fiscal Sustainability Report

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Executive Summary (excerpt)

In the Fiscal sustainability report (FSR) we look beyond the medium-term forecast horizon of our twice-yearly Economic and fiscal outlooks and ask whether the UK’s public finances are likely to be sustainable over the longer term. 2 In doing so our approach is twofold:

• first, we look at the fiscal impact of past government activity, as reflected in the assets and liabilities on the public sector’s balance sheet; and
• second, we look at the potential fiscal impact of future government activity, by making 50-year projections of all public spending, revenues and significant financial transactions, such as government loans to students.