Rachel Reeves looks for extra headroom in budget to insulate UK economy against bond market

Chancellor hopes to raise enough funds to stop damaging speculation about breaching fiscal rules

Rachel Reeves v the OBR: chancellor aims to loosen the watchdog’s grip

Rachel Reeves is aiming to create more “headroom” against her fiscal rules in November’s tax-raising budget, to cushion the UK against volatile government bond markets.

The chancellor met her first rule – to balance taxes and day-to-day spending – with £10bn to spare in last autumn’s budget, and again at her March spring statement.

That historically narrow margin has repeatedly left Reeves at risk of breaching her rules, amid market pressures pushing up the cost of government borrowing.