Economist Cara Pacitti, from Resolution Foundation, said Ms Reeves was being left “in the unenviable position of needing to raise taxes or cut spending to meet her fiscal rules at the OBR’s 26 March forecast”.
It has left experts warning the Chancellor is on a “knife edge” of missing borrowing targets and having to raise taxes or cut spending to stay within her fiscal rules.
Darren Jones, chief secretary to the Treasury, said: “We will never play fast and loose with the public finances, that’s why we’re going through every pound spent, line by line”.
Shadow Chancellor Mel Stride said: “The latest borrowing figures expose the true cost of Labour’s reckless economic policies.”.
RACHEL Reeves has suffered a new setback after a surplus in government finances came in more than £5billion below forecasts.
