Rachel Reeves needs wider headroom against fiscal rules, ex-Bank of England deputy says

Charlie Bean says slim margin of 10bn means chancellor has to neurotically fine-tune taxes to control OBR forecast'

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The former Bank of England deputy governor Charlie Bean has urged Rachel Reeves to create much wider headroom against her fiscal rules - a decision likely to require significant tax rises or spending cuts.

Bean suggested that the current slim margin of less than 10bn, had led the chancellor to fine-tune" the government's tax and spending plans to meet the Office for Budget Responsibility's (OBR) forecasts five years ahead.