Government borrowing higher than expected as pressure builds on Reeves

UK government borrowing was higher than expected in February at £10.7bn, exceeding forecasts of £6.5bn, adding pressure on Chancellor Rachel Reeves ahead of her Spring Statement next week. Reeves faces the challenge of meeting her self-imposed rules for the economy, including not borrowing for day-to-day spending and reducing debt as a share of GDP by 2029/30, amidst concerns of missing these targets due to increased borrowing. Economists anticipate Reeves may announce further spending cuts to address the tight fiscal backdrop and potential shortfall in meeting her borrowing rules, as the Office for Budget Responsibility is expected to find her available spending buffer has been depleted.

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