Chancellor John Healey will face pressure to raise taxes or cut spending at next month’s Budget, as soaring borrowing costs because of the Iran war and weaker growth has wiped nearly £12 billion off the Government’s fiscal headroom, according to a new report.
The latest KPMG economic outlook estimates that Mr Healey could be left with headroom of about £12 billion in the autumn, down from £23.6 billion at the time of the spring forecast.
