Chancellor John Healey said in his first budget speech on Wednesday that the
Office for Budget Responsibility forecasts the UK’s fiscal buffer will shrink by
the end of the decade. The OBR projects that in 2029/30 tax receipts will exceed
day-to-day spending by £15bn (about $20bn), down from a £24bn buffer the OBR
estimated in the March budget update released by former chancellor Reeves. A
survey of bond dealers earlier this month, citing higher borrowing costs and
pressure on government spending, likewise expected the buffer to fall to £15bn.
Healey said the government will meet its fiscal targets.