Borrowing overshoot will test Rachel Reeves’s resolve on tax rises

Chancellor may see data as vindication for spending cuts but some analysts say more radical action will be needed

• UK borrowing rises to £10.7bn in setback for Reeves
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February’s public finances data, published on Friday, is only likely to make Rachel Reeves more convinced that she needs to take action at next Wednesday’s spring statement.

Despite scepticism from economists and some colleagues, including in the cabinet, Reeves is determined to make spending cuts, including the £5bn reduction in welfare spending already announced, to restore the headroom against her self-imposed fiscal rules.

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