Borrowing overshoot will test Rachel Reeves’s resolve on tax rises
by Heather Stewart Economics editor from Economics | The Guardian on (#6W31V)
Chancellor may see data as vindication for spending cuts but some analysts say more radical action will be needed
February's public finances data, published on Friday, is only likely to make Rachel Reeves more convinced she needs to take action at the spring statement next Wednesday.
Despite scepticism from economists and some colleagues, including in the cabinet, the chancellor is determined to make spending cuts, including the 5bn reduction in welfare spending already announced, to restore headroom against her self-imposed fiscal rules.
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