Reeves’ Buffer at Risk From Migration Clampdown and Rising Spending

Just weeks after Rachel Reeves tried to boost market confidence in Britain’s fiscal stability, the Chancellor of the Exchequer’s wiggle room is under threat again.

The Labour government’s latest policy U-turns, its clampdown on immigration and the pressures on its armed forces could knock billions off the £21.7 billion ($29.2 billion) of headroom that Reeves built up with more tax hikes at her Nov. 26 budget. As much as two thirds may be at risk, using a conservative assumption of the possible hit.