Reeves Rejects Using Fiscal Rules Escape Clause Over Tariff War

UK Chancellor of the Exchequer Rachel Reeves said she doesn’t plan to use a get-out clause to override her fiscal rules, even as US President Donald Trump’s tariff war roiled global markets, forcing down the pound and UK gilts.

Under Britain’s charter for budget responsibility, Reeves is allowed to suspend her self-imposed rules “in the event of an emergency, or a significant negative economic shock to the UK economy.” Asked if she planned to use that mechanism to bypass her rules, including that tax receipts should fund day-to-day government spending, Reeves said: “no.”