In February, UK government borrowing reached £10.7 billion, significantly higher than the £6.5 billion forecasted, putting Chancellor Rachel Reeves under pressure ahead of her Spring Statement. With economists predicting potential spending cuts, this borrowing level raises concerns about her adherence to self-imposed fiscal rules aimed at maintaining public financial credibility. The Chancellor's two main targets are not to borrow for day-to-day spending and to reduce debt relative to the economy by 2029/30. Analysts suggest that February's figures indicate a tight fiscal backdrop, possibly erasing the financial cushion previously available for government spending.
We must go further and faster to create an agile and productive state that works for people, emphasizing the importance of maintaining public financial integrity.
The higher-than-expected borrowing puts more pressure on the Chancellor ahead of the Spring Statement, risking a breach of her self-imposed borrowing rules.
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