Rachel Reeves’s fiscal rules buffer should be ‘significantly larger’, say peers
A House of Lords committee has recommended that Chancellor Rachel Reeves should significantly increase the fiscal rules buffer to address the UK's unsustainable public debt trajectory. The committee criticized previous governments for maintaining low fiscal headroom, which could lead to destabilizing policy changes. They emphasized the importance of adhering to stricter interpretations of fiscal rules to ensure long-term financial stability.
- ▪The House of Lords committee suggests a larger fiscal buffer for Chancellor Rachel Reeves.
- ▪The current buffer of £22bn is considered historically low and insufficient.
- ▪The report warns that the UK is on a path to unsustainable debt levels, echoing concerns from the Office for Budget Responsibility.
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The chancellor, Rachel Reeves, raised taxes at last year’s budget in order to more than double the buffer against her fiscal rules. Photograph: Sean Smith/The GuardianView image in fullscreenThe chancellor, Rachel Reeves, raised taxes at last year’s budget in order to more than double the buffer against her fiscal rules. Photograph: Sean Smith/The GuardianEconomicsRachel Reeves’s fiscal rules buffer should be ‘significantly larger’, say peersLord committee says chancellor and recent predecessors have allowed themselves too little room for manoeuvre Business live – latest updates Heather Stewart Economics editorTue 28 Apr 2026 00.00 EDTLast modified on Tue 28 Apr 2026 00.01 EDTSharePrefer the Guardian on GoogleRachel Reeves should aim to run a “significantly larger” buffer against her…
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