Ageing UK rated high risk

The UK's ageing population and huge debt have propelled it into the top ten of countries threatened by unsustainable public finances, new research has found.

Britain is now one of 12 nations rated "extreme risk" in the Fiscal Risk Index compiled by global analyst Maplecroft.

The UK was ranked tenth in the list of 163 countries - up from 27th last year under a slightly different method of calculating positions - because of its high public spending on health and pensions, massive borrowing and shrinking working population. The Fiscal Risk Index identifies nations that will come under increasing economic pressure because of low birth rates, high life expectancy and state commitments to look after older people.

Italy topped the international league table, followed by Belgium, France, Sweden, Germany, Hungary, Denmark and Austria.

Japan came ninth, the only non-European country rated "extreme risk", with Finland 11th and Greece 12th.

Maplecroft highlighted the UK's relatively low number of over-65s in the workforce - only 7.71 per cent compared with an average of 28 per cent across all the countries surveyed.