Recommendation 33

Written evidence we received from the ICAEW stressed that, in the absence of discount rates noted in earlier sections, the UK government had a deficit of £200 billion in 2022–23. The ICAEW noted that this deficit is more than 20% of the revenue the UK government received in 2022–23 (£975 billion) and that this deficit is greater than that reported in the National Accounts (£77 billion), as the WGA includes longer term financial liabilities that the government incurs. It stressed the need for a long–term fiscal strategy to put the public finances on a sustainable path.71 Evidence from Professor David Heald argued that the WGA does not appear to be central to 66 Q 79 67 Qq 79–80 68 Public debt projected to exceed 270 per cent of GDP by the mid-2070s - Office for Budget Responsibility 69 Q 81 70 Q 82 71 WGA0003 18 Treasury thinking when it comes to fiscal policy, despite some of the written statements in the WGA. Professor Heald also provided commentary on the relevance of, and implications for, the WGA in the context of the new fiscal rules recently announced by The Chancellor.72 72 WGA0002 19