Jump in UK borrowing shows Rachel Reeves needs to relax her strict budget rules

There is mounting pressure on Rachel Reeves to relax her budget rules and to prepare the ground by telling voters in the next few weeks. Reeves gambled that the Treasury could brazen out a difficult year with nearly £10bn of headroom – a cushion that would protect the government against all eventualities. They are making their own assessment of the public finances and the tension between the people-pleasing Starmer and the iron chancellor. They know more concessions from No 10 will make the likelihood of higher taxes on business more likely in the autumn. The thinktank favours bringing down debt, but after a period of public investment has sparked a rise in tax receipts.