Overview

• Chief Secretary James Murray told ministers the reserve cannot be used for public‑sector pay and will be opened only in exceptional cases.
• Departments must prove they have exhausted savings and any approved draw will be repaid over future years.
• The reserve totaled about £9bn last year and is expected to be roughly half that size this year, according to official guidance and recent figures.
• Recent use of the fund has covered one‑off pressures including asylum costs and pay awards, with the Home Office claiming £4.3bn in 2023–24 and large top‑ups for education and health.
• The ONS has revised borrowing down to £81.8bn to August, providing roughly £2bn of extra headroom, though economists expect difficult tax and spending decisions in the Budget.