Big challenges remain for Reeves in the Autumn with fiscal headroom now 'wafer thin'

Meeting fiscal rules a 'coin toss'

Significant challenges will continue to cause Chancellor Rachel Reeves a fiscal and economic headache for the rest of the year, experts have warned, in the wake of the Treasury's Spring Statement on Wednesday (26 March).

Reeves took to dispatch box to unveil the latest swathe of fiscal measures and lay out the findings from the independent economic forecaster, the Office for Budget Responsibility (OBR).  The OBR's analysis outlined a combination of higher debt interest payments and weaker-than-anticipated receipts that have wiped out Reeves' previous £9.9bn fiscal headroom, resulting in a deficit of £4.1bn before accounting for new policies.  Spring Statement 25: OBR halves UK growth forecast to 1% for 2025 However, the net £3.2bn savings generated from cuts to welfare budgets, which the OBR said w...