ONS data showed UK GDP rose 0.1% month-on-month in August, vs economists' median
forecast for a 0.1% contraction and after July's 0.4% gain. Three-month growth
to August (Jun–Aug) was 0.7%, above the prior three months' 0.5%. The FT
estimates Chancellor John Healey's usable fiscal headroom under government rules
may have narrowed to about £12 bln, down from the OBR's March estimate of £23.6
bln. The tighter fiscal buffer could force tax increases and spending cuts to
maintain gilt investor confidence and finance cost-of-living measures ahead of
the budget.
