Headlines
UK's Reeves says she would like a bigger fiscal buffer but that means trade-offs
Published by Global Banking and Finance Review
Posted on October 16, 2025
1 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 16, 2025
1 min readLast updated: January 21, 2026
Rachel Reeves wants a larger UK fiscal buffer, requiring trade-offs in tax and spending, as she plans her upcoming budget.
WASHINGTON (Reuters) -British finance minister Rachel Reeves said on Thursday she would like to have a bigger fiscal buffer to cope with volatile global markets, but that creating one in her budget next month would involve trade-offs on tax and spending.
"Would I like more headroom? Of course I would. But that does come with trade-offs because more headroom requires more tax revenue or less spending on public services like the NHS, so you've got to get the balance right there," Reeves told reporters.
On Wednesday she said she was looking at tax and spending measures for her next budget on November 26, having raised taxes by 40 billion pounds in her first fiscal plan last year.
(Reporting by David Milliken in WashingtonWriting by William James and editing by William Schomberg in London)
The main topic is Rachel Reeves' intention to increase the UK's fiscal buffer, which involves trade-offs in tax and spending.
The trade-offs involve either increasing tax revenue or reducing spending on public services like the NHS.
Rachel Reeves is planning her next budget for November 26.
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