Rachel Reeves’s fiscal rules buffer should be ‘significantly larger’, say peers

Lord committee says chancellor and recent predecessors have allowed themselves too little room for manoeuvre

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Rachel Reeves should aim to run a “significantly larger” buffer against her fiscal rules, according to a report from a House of Lords committee that says the UK’s public debt is on an unsustainable trajectory.

The chancellor raised taxes at last year’s budget in order to more than double the “headroom”, or buffer, against her fiscal rules to £22bn – some of which is expected to be eroded by the impact of the Iran war.