12 April 2012
A substantial rise in the UK's ageing population could force the Government to introduce tax rises, the International Monetary Fund (IMF) has warned.
The IMF's bi-annual World Economic Outlook warns that the UK population is expected to be smaller but older by 2050.
The report says this will mean the UK has to spend an extra 4% of its GDP - mainly on additional health services, but some money also going on long-term care and pensions.
The report also warns that an ageing population may mean less new people join the labour force, which could create a mismatch between skills and companies' needs.
It suggests the problem could be partly alleviated by encouraging higher birth rates and immigration.
