Alex Kerr, economist at the consultancy Capital Economics, said: “Against a backdrop of slowing GDP growth and high interest rates, December’s overshoot in borrowing is further disappointing news for the chancellor.” Given that the Budget gave Reeves just £9.9bn in wriggle room to meet her fiscal rule, Kerr said there was an increasing risk that the chancellor would need to cut spending or raise taxes, and that her headroom had been whittled down to £2bn.