Investors warn Rachel Reeves she has little fiscal room for error

Moody’s says UK’s moves to restore budget headroom reflect difficult fiscal outlook

(Reuters) – Ratings agency Moody’s on Friday said the UK government’s moves to restore budget headroom reflect a difficult fiscal outlook, although the timely reaction to a deterioration in public finances is positive. British finance minister Rachel Reeves on Wednesday rebuilt the margin against which Britain’s government will meet its fiscal rules, in part by cutting welfare payments. “There is a significant risk that the chancellor will have …

Investors warn Rachel Reeves she has little fiscal room for error

Chancellor criticised over decision to stick with £9.9bn of budgetary headroom

Reeves’ UK Budgetary Buffer Already Cut in Half by Market Moves

UK Chancellor of the Exchequer Rachel Reeves boasted on Wednesday that she’d restored her fiscal buffer to £9.9 billion ($13 billion) after it had been wiped out in the five months since her first budget. A day later, it’s become clear she’s lost half of it already.

Investors warn Rachel Reeves she has little fiscal room for error – Sky News: The Latest News from the World

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Rachel Reeves has been accused of leaving her fiscal policy on a “precarious” footing as market movements exposed how easily her budget headroom could evaporate again if borrowing costs go higher. The UK chancellor on […]