A report published by the European Union data analysts predicts that the country's population will increase to more than 76m by 2060, with nearly a quarter of the population being pensioners.

The 12-page Eurostat document also notes that the over 80s will form nearly 10% of the population.

Presently, 16.1% of the population of 61.3m are over 65, and this is predicted to rise to 24.74%, with a population of 76.7m. The over 80s presently make up 4.52%, which will increase to 8.97% the report says.

This has serious implications for both the economy and the government. With the over 65s producing a much lower level of tax for the government, and taking a much greater spend from the government in the form of medical costs, it will take significant planning to predict the balance sheet of UK PLC. Interestingly, Mr Cameron's stated view of increasing the IHT threshold to £1m is a poor move from a tax point of view, as it is the only tax revenue likely to increase in the future as income tax and CGT fall as the age of the population increases.