Could the Budget help turn Generation Z into generation debt?

"Some have argued keeping the national debt down protects the financial interests of younger people. That's because if the country's debt went up drastically, it is younger people who would have to foot the bill to pay for the interest on it. And it would be taken directly from their payslips through higher taxes. Generation Z, or those born between 1997 and 2012, have been hit in the pocket over the past 15 years by benefit cuts and dramatic increases in university tuition fees."

"However, most politicians, including the chancellor, are also committing to keep paying for the triple lock on the state pension, which guarantees it rises each year by the highest of average wages, inflation or 2.5%. There's growing concern that current tax and spending policies help pensioners but are unfair on younger generations, and that the triple lock in particular will push up public spending and the national debt in the long term."

The upcoming Budget is framed around tax increases aimed at keeping the UK's national debt under control. Rising national debt would shift interest costs onto younger people through higher taxes deducted from payslips. Generation Z has experienced benefit cuts, large tuition fee increases, and lower homeownership rates than earlier cohorts. Politicians remain committed to the state pension triple lock, guaranteeing annual rises by the highest of wages, inflation or 2.5%. Concerns exist that these choices favour pensioners, increase public spending, and could push long-term national debt much higher. The UK's debt is just under 100% of GDP; the OBR warns it could exceed 250% over 50 years unless taxes rise or spending falls, though some economists expect market reactions before such a surge.

Read at www.bbc.com