Chancellor Rachel Reeves has been told by the Institute for Fiscal Studies (IFS) that she must raise at least £22bn just to restore the UK's “tiny” headroom at the upcoming Autumn Budget.
In its annual Green Budget, which was released in full today (16 October), the IFS explained that Reeves needs fiscal tightening of at least £12bn to meet her fiscal rule of running a current budget surplus by 2029-30. However, in order to restore the near £10bn fiscal headroom that she set in her Spring Statement back in March, an overall tightening of £22bn would be required, the economic think tank noted. Under this scenario, though, the chancellor would likely miss the government's second fiscal rule, to have debt, as measured by public sector net financial liabilities (PSNFL), f...
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