A new report indicates Chancellor John Healey will come under pressure to raise taxes or cut spending at next month’s Budget, after soaring borrowing costs from the Iran war and weaker growth wiped almost £12 billion off the Government’s fiscal headroom.
KPMG's latest economic outlook suggests Mr Healey might be left with around £12 billion in fiscal headroom this autumn, down from £23.6 billion projected in the spring forecast.
