Overview

• The Chancellor defended tight fiscal rules and said the government is reliant on bond buyers to fund public services, warning there are limits to borrowing.
• Her comments followed Andy Burnham’s claim that the country must move beyond being "in hock to the bond markets", which she countered by saying she would like that outcome but that reliance remains a reality.
• Debt interest is projected by the OBR to exceed £110bn within years, with Reeves noting the burden rivals the combined budgets of Defence, the Home Office and Justice.
• Treasury officials expect to plug about £30bn, according to ITV News, with options under discussion including higher taxes on pension pots and gambling firms and property tax changes such as staggered stamp duty payments.
• Internal pressure continues over whether to relax fiscal rules, with past backbench rebellions on savings measures and Keir Starmer urging the party to avoid infighting ahead of conference.