Rachel Reeves is examining reforms to her budget regime to avoid another unexpected springtime fiscal repair job as she comes under mounting investor pressure to curb the volatility of UK economic policymaking.
The UK chancellor is considering recommendations by the IMF that it said aim to “reduce pressure for frequent fiscal policy changes” as she doubles down on her vow to hold just one fiscal event a year, according to people familiar with Treasury discussions.
The Fund in May suggested changes to ensure small breaches of the rules do not force “corrective fiscal action” between budgets. It said alternatively the UK could assess compliance with the fiscal rules only once a year, instead of twice.
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