Rachel Reeves Faces Fiscal Challenges Ahead of Annual Budget Announcement

British finance minister Rachel Reeves will present her annual budget on November 26, marking a crucial moment as financial market eyes scrutinize the UK's fiscal policies. Concerns about the country's financial stability have already driven 30-year borrowing costs to heights not seen since 1998.

Reeves, alongside Prime Minister Keir Starmer, faces increasing pressure to manage growing spending needs while maintaining promises of no major tax hikes. With a weak economic backdrop, shedding light on her fiscal strategy will be paramount in achieving a balanced budget by the 2029/30 fiscal year.

Though previously holding a 10 billion-pound margin to meet targets, economists now predict a 20 billion-pound deficit challenge due to sluggish growth and costly economic policy reversals. The upcoming budget announcement also coincides with an update from the Office for Budget Responsibility on growth and borrowing projections.

(With inputs from agencies.)