Surge in UK Borrowing Costs Eliminates Chancellor Reeves' Fiscal Flexibility

Reported 20 days ago

A recent spike in UK borrowing costs has completely erased Chancellor Rachel Reeves' fiscal headroom, putting her main fiscal rule at risk and raising concerns over potential tax hikes or spending cuts. The increase in government borrowing costs, triggered by unexpected budget announcements, has left Reeves with minimal capacity to address any economic shocks, as warnings of weak growth and inflationary policies further complicate her fiscal strategy.

Source: YAHOO

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