Reeves faces challenges as UK economic recovery plan struggles

UK Chancellor Rachel Reeves faces challenges as her economic recovery plan struggles. Her budget, which aimed to end austerity, is now under pressure due to rising government borrowing costs and domestic economic issues. Reeves may need to increase taxes or borrowing to maintain public spending commitments. The UK economy shows signs of stagnation, with consumers hesitant to spend and inflation concerns growing. Critics argue that Reeves' strict budget rules limit flexibility. They suggest loosening these rules could help stimulate the economy, but Reeves is cautious about potential market reactions and higher borrowing costs.