Reeves boxed in as Government borrowing balloons
Portfolio Pulse from
The UK government borrowed £10.7bn in February, significantly higher than the £6.5bn forecast by the Office for Budget Responsibility. This unexpected increase puts pressure on Chancellor Rachel Reeves ahead of her Spring Statement, potentially forcing her to implement deeper spending cuts and risking her fiscal rules of reducing debt as a percentage of economic output by 2029/30.
March 21, 2025 | 9:30 am
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NEGATIVE IMPACT
Higher than expected government borrowing could signal potential economic stress and fiscal policy adjustments that might influence market sentiment.
Unexpected government borrowing increases economic uncertainty, which could negatively impact financial markets and investor confidence in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50