Rising borrowing costs and pressure to control spending force Chancellor Rachel Reeves to make tough choices.
The UK's economic outlook remains bleak, with rising borrowing costs and pressure on Chancellor Rachel Reeves to control public spending. The volatility in the gilt market, partially driven by global factors, has squeezed Reeves's fiscal headroom. She faces a difficult choice: implement unpopular tax cuts or make deeper spending cuts . The cost of servicing UK debt has soared to levels unseen since the 2008 financial crisis, wiping out Reeves's thin £9.9bn headroom.
Reeves is facing mounting criticism for her handling of the economy, with some Labour MPs questioning her ability to remain in post. Reeves's trip to China to strengthen economic ties was met with mixed reactions, with some seeing it as a necessary step while others viewed it as a panicked move. She is under increasing pressure to demonstrate that her economic plan is working and to improve her public standing
Politics UK Economy Chancellor Rachel Reeves Fiscal Policy Borrowing Costs Spending Cuts Taxes Labour Party
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