Alex Kerr, UK economist at consultancy Capital Economics, said the “run of bad news” in recent economic data underlined the difficult choices for Reeves, in particular as pressure mounted to increase defence spending at the urging of US President Donald Trump. Even before this “ratcheting up of pressure” on defence, her options ahead of the Spring Statement were “bleak”, Kerr said. Now, a combination of higher gilt yields, weak productivity and poor growth meant headroom against the fiscal rules could be “wiped out completely”.