UK's Reeves: OBR Sees 2029-30 Fiscal Buffer of £23.6 Bln

UK Chancellor Rachel Reeves announced the Office for Budget Responsibility projects a £23.6 billion fiscal buffer for 2029-30, exceeding her November estimate of £21.7 billion. The buffer ensures day-to-day government spending will be fully covered by tax revenues, meeting a key fiscal rule by the target year. Reeves delivered the update during a House of Commons address, emphasizing improved fiscal forecasts compared to prior projections. The £23.6 billion surplus (about $31.4 billion) reflects stronger-than-expected economic conditions, per the independent fiscal watchdog’s assessment. This fiscal headroom provides flexibility for future policy decisions while maintaining budget discipline through the decade.