LONDON (Reuters) -British finance minister Rachel Reeves plans to build up a bigger buffer against her main fiscal rule at next month’s budget in an effort to better insulate government finances from future shocks, the Sunday Telegraph reported.
Reeves said in her March spring statement that her spending and tax plans would leave a 9.9 billion pound ($13 billion) fiscal buffer against her main target of balancing day-to-day public spending with tax revenues by 2030.
Since then the government’s borrowing costs have risen by more than expected, a plan to save 5 billion pounds a year in welfare costs has been dropped and Britain’s budget watchdog has suggested it will lower its growth forecasts.
Economic think tanks now expect Reeves to need to raise about 30 billion pounds in tax increase