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World

OBR gloom spells trouble ahead for Rachel Reeves

12 February 2025

11:50 PM

12 February 2025

11:50 PM

Has Rachel Reeves broken her fiscal rules? It’s been speculated for some time now that the Chancellor lost her headroom when borrowing costs surged last month. Capital Economics forecast at the start of the year that Reeves’s limited headroom (about £10 billion) had been wiped out by rising gilt yields.

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