Tax Hikes Insufficient to Fix UK Debt Spiral, OBR Chair Says (1)

The head of Britain’s budget watchdog warned that tax increases may not be enough to bring the UK’s spiraling debt burden under control since the strategy could backfire by slowing the economy.

In testimony to the Treasury Select Committee, the Office for Budget Responsibility Chair Richard Hughes told Members of Parliament that greater efforts are needed to reduce the government’s debt as a share of GDP and prepare for the next crisis. But he warned “higher and higher levels of taxes are not good for growth.”

Lawmakers were questioning Hughes and his colleagues about the grim outlook for the UK’s ...