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fiscal headroom

  • FTSE 100 Live: OBR chiefs face MP grilling; Food inflation slows

    Markets

    Good morning and welcome back to the City AM liveblog. The Office for Budget Responsibility (OBR) admitted its “worst failure in the 15-year history” of the fiscal watchdog on Monday. This morning, from 10am, two of its remaining spokespeople will be facing a grilling from the Treasury select committee of MPs. The sensational leak of [...]

    Breaking news live blog placeholder with a focus on real-time updates and dynamic content for general news coverage
  • ‘Fiscal fiction’: IFS challenges Reeves’ tax measures

    Economics

    The Chancellor may need to come back for more tax rises at a future Budget, according to the Institute for Fiscal Studies (IFS) which warned much of the headroom Rachel Reeves carved out for herself relied on “near heroic restraint” on departmental spending in an election year. Helen Miller, the think tank’s director, said that [...]

    GettyImages 2181228120: Business professionals discussing strategy at a conference table in a modern corporate office setting
  • UK remains in ‘weak fiscal position’ after Budget

    Economics

    The UK remains in a weak fiscal position after Wednesday’s Budget despite the Chancellor launching an historic fiscal consolidation in an attempt to shore up the public finances and avoid another tax raising budget, several top economists have warned. Rachel Reeves chose to hike taxes by £26bn via a vast combination of sector-specific levies, pension [...]

    The Bank of England's former Governor has raised alarm at the UK's high levels of debt.
  • Everything we know about Rachel Reeves’ Budget – from mansions to milkshakes

    November 24, 2025

    In the run-up to the mother of all Autumn Budgets to be delivered by Chancellor Rachel Reeves this week, tax rumours have run wild, infecting the minds of businesses and working Brits while adding to the sense of peril that a botched fiscal event could bring. Investors are running scared. Voters fear looming betrayal. Gamblers [...]

  • UK tech founders warn Reeves her Budget could derail London IPO plans

    November 6, 2025

    Executives from some of Britain’s most valuable technology start-ups have warned Rachel Reeves that proposed tax measures in this month’s budget could force them to abandon London listing plans. According to Sky News, a letter was sent this week by companies like Revolut and Clearscore, urging the Treasury not to impose an exit tax on [...]

  • Autumn Budget: Rachel Reeves pledges to beat ‘gloomy’ economic forecasts

    October 29, 2025

    Rachel Reeves has insisted that the UK can overcome bleak forecasts that look set to box her into manifesto U-turns and further tax hikes.  The Chancellor wrote in The Guardian that she is “determined not to simply accept the forecasts”, pointing to interest rates cuts and trade deals as examples of Britain on the right [...]

  • Up to £115bn government spending cuts ‘staring us in the face’ 

    October 22, 2025

    Around £115bn in cuts to government spending each year are “staring us in the face”, according to a new report, as Chancellor Rachel Reeves faces increasing pressure to regain control of the public finances.  In a paper published by the think tank Policy Exchange, the Chancellor has been warned to prevent a “twin-pronged fiscal crisis” [...]

  • Rachel Reeves’ growth policies scored by City AM 

    October 20, 2025

    As Rachel Reeves does her maths ahead of the 26 November Budget, she will hope that Labour’s policies have delivered enough growth to limit the number of tax hikes needed to restore her £9.9bn fiscal headroom. The fiscal black hole facing the Treasury could be between £20bn and £30bn due to higher borrowing costs, productivity [...]

  • Over half of firms would stop hiring if Reeves hikes taxes, survey finds

    October 17, 2025

    More than half of businesses would cut staff or stop hiring if taxes are hiked at this year’s Budget, a leading survey of accountants has found, a fresh warning that Chancellor Rachel Reeves risks inflicting further damage on the UK jobs market.  Reeves has publicly said that she was considering making tax hikes at this [...]

  • We have to get serious about major spending cuts

    October 16, 2025

    Speculation over the contents of next month’s Budget has reached fever pitch, and it’s only going to ramp up from here. This is not idle curiosity; with businesses still adapting to the confidence-sapping and job-smothering fallout from last year’s Budget, there is now a genuine fear that what remains of our economic resilience could be [...]

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