Reeves’s headroom wiped out by surge in borrowing costs

Alex Kerr, at Capital Economics, estimated that the Chancellor would have to raise between £17bn and £27bn at the Budget “most of which will probably be funded by tax rises”.

Analysis by Capital Economics shows the rise in UK gilt yields since March has already eroded her headroom from £9.9bn to £6.7bn. Alex Kerr, at Capital Economics, says the recent about-turns on...

Alex Kerr, UK economist at Capital Economics, a consultancy, said: “Things will probably get worse for the chancellor. We think that she will need to raise £15-25 billion at the budget later this year...