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Fiscal deficit set to worsen
Bristol Post
|October 29, 2025
RACHEL Reeves' expanding fiscal deficit is poised to worsen as the financial watchdog delivers its final productivity assessment to the Chancellor on Friday.
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The Treasury is already struggling to manage public finances following a U-turn on welfare reforms that destroyed hopes of £5bn in savings, while a £190bn spending spree on government departments has helped to erode the Chancellor's razor-thin £9.9bn fiscal headroom.
Reeves has repeatedly reinforced her "iron clad" fiscal rules to finance day-to-day public expenditure through tax receipts.
However, that commitment has sparked speculation that the UK will face another fresh wave of taxes at the Budget on November 26.
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