"The Lords economic affairs committee says Reeves should aim to raise it more, and complains that she and her recent predecessors have tended to allow themselves too little room for manoeuvre, compared with the 30bn average between 2010 and 2022."
"The high-powered committee, chaired by the Labour peer Stewart Wood, includes the former Treasury permanent secretary Terry Burns, the economist Alison Wolf, and the former chancellor Norman Lamont, who has stepped down since the inquiry into the UK's fiscal framework was completed."
"On current tax and spending settings, the UK is on a path to unsustainable debt levels, the report says. These issues should be of paramount concern for the government."
The House of Lords committee recommends that Rachel Reeves increase the fiscal buffer against her fiscal rules beyond the current £22 billion. The report criticizes previous governments for maintaining low fiscal headroom, which poses risks for policy stability. The committee emphasizes that the UK's public debt is on an unsustainable path, echoing concerns from the Office for Budget Responsibility. A larger buffer is necessary to ensure long-term fiscal stability and to avoid chaotic policy changes.
Read at www.theguardian.com
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