UK Should Have a Substantially Larger Fiscal Margin, Lords Say

UK governments must stop using their fiscal buffer as a “piggy bank” and toughen up the budget guidelines to help restore credibility with investors, according to a report by lawmakers in the House of Lords.

The Economic Affairs Committee said Chancellor of the Exchequer Rachel Reeves should commit to having a “substantially larger” margin that would leave her plans less vulnerable to downgrades to the economic outlook. It also called for an additional aim that would have debt lower in the third year of the forecast than the first.