Now even Andy Burnham's favourite think tank says Labour is building up a 'mountain' of debt to hand to the next generation

See more Daily Mail on Google - save us as a Preferred Source Published: 19:02 EDT, 12 August 2026 | Updated: 19:59 EDT, 12 August 2026 Andy Burnham's favourite think tank has warned that the Government is building up a mountain of debt to hand over to the next generation.One in every £5 of tax paid by future generations is set to be swallowed up by interest on government debt, according to new analysis by the Institute for Public Policy Research (IPPR).The Left-wing think tank said that Britain is currently 'not on a fiscally sustainable track' and it will be those born over the next 15 years – known as Generation Beta – that will be left to shoulder the 'heavy burden'.New IPPR modelling found that debt interest could account for 21 per cent of government revenue by 2075 under the most likely scenario – and in the worst case it could soar to a crippling 47 per cent.Shadow chancellor Sir Mel Stride said: 'Even Andy Burnham's favourite think tank say Labour are building up a mountain of debt to hand over to the next generation.'Ministers refuse to get spending under control because they lack the backbone to face down their left-wing backbenchers who just want more money to spend on benefits.'Burnham and Healey have no idea how to fix the mess other than to borrow even more than Starmer and Reeves did.'IPPR said it is not calling for a change to the Government's current borrowing rules, as 'the risk of even higher borrowing costs means the government should stick to its fiscal rules'. Prime Minister Andy Burnham and his Chancellor John Healey have committed to sticking to the fiscal rulesBut it has called on Labour to 'begin developing a new fiscal framework in the next parliament', suggesting the Government should look to borrow even more money for long-term projects such as climate resilience programmes.The Prime Minister and Chancellor John Healey have committed to sticking to the current fiscal rules. But pressure is likely to grow on Mr Healey to either raise taxes or bend the borrowing rules to fund Mr Burnham's spending pledges at the Budget in October.IPPR's proposals wield significant influence in Labour circles and its alumni have secured a number of key positions in government and No10 under Mr Burnham, including his chief of staff James Purnell and Energy Secretary Miatta Fahnbulleh.William Ellis, senior economist at IPPR, said that Britain's current fiscal framework is 'not fit for purpose' and on the current path the government will be paying £1 in every £5 gained to cover interest costs.He added: 'This is not a call to significantly change the borrowing pathway now. The government should stick to its existing rules, and any reform must come in the next parliament, from a position of strength once those rules have been met. 'A reformed framework should make the trade-offs between short term investment and addressing long term problems visible. Fiscal plans should be held to account on the debt servicing ratio, supported by a dashboard of indicators, and underpinned by a long-term strategy.'A Treasury spokesman said: 'Fiscal discipline is the bedrock of economic stability and national security. The Chancellor and Prime Minister are in lockstep that the Government will meet the fiscal rules, with a buffer against uncertainty - and that includes getting debt down.'