Reeves Faces Mounting Calls to Expand UK’s Fiscal Buffer

The article discusses the mounting pressure on UK Chancellor Rachel Reeves to expand the country's fiscal buffer at the upcoming budget. Economists are urging Reeves to increase the buffer against her fiscal rules, which they believe could create a "virtuous circle" that would alleviate bond-market uncertainty and eliminate the need for further tax hikes during this parliamentary term. The article notes that Reeves' fiscal rules, which aim to balance the current budget and start reducing the national debt within five years, have come under scrutiny due to the economic challenges facing the UK. By expanding the fiscal buffer, Reeves could provide more flexibility to navigate these challenges and potentially avoid the need for additional tax increases, which have become a political liability. The article highlights the growing pressure on Reeves to address the fiscal situation and find a balance between fiscal discipline and supporting the economy during a challenging economic period.