Reeves Risks Fiscal Rule Breach, Bond Market Test in Spring
- OBR may declare that Reeves is missing her key fiscal rule
- Reeves has appeared to rule out further tax hikes on business
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Chancellor of the Exchequer Rachel Reeves risks having to fill a fiscal shortfall early next year, running the gauntlet of skittish bond markets in a test potentially tougher than at her first UK budget in October.
The Office for Budget Responsibility, the government’s fiscal watchdog, is expected by some economists to declare that Britain’s finance minister will be breaking her own fiscal rules when it delivers its spring economic update by the end of March. That could force Reeves into an unscheduled mini-budget in a moment of fresh market peril after a rocky reception to her budget.