OECD: Countries must do more to lower debt While the impact of the crisis has been substantial in some countries, it often represents a relatively small part of the overall fiscal challenge, which is for many countries driven by future pension and health care spending pressures. It said fiscal consolidations of more than 3pc of GDP will be required in some countries. The UK, US and New Zealand already have plans equivalent to more than 8pc of GDP. In the UK, official forecasts from the Office for Budget Responsibility suggest public sector net debt will rise to 71.9pc of GDP this year from 67.3pc last year. According to the OBR, it will peak at 76.3pc of GDP in 2014-15, although actual debt levels are forecast to keep rising, hitting £1.5 trillion in 2016-17, from an estimated £1.2 trillion this year. The OECD said governments should focus much of their consolidation plans on spending cuts. "Given the currently high level of taxation in many OECD countries, which adversely affects economic performance, and the future spending pressures due to population ageing, a large part of consolidation should probably focus on cutting public spending and addressing the drivers of future spending pressures," it said.