“Government borrowing in February was significantly above OBR projections, and rising energy prices remain a clear risk to public finances through their effect on interest rates and inflation.
“If the change in market rates persists to the Autumn Budget, this alone could reduce the Chancellor’s headroom by around £10bn, with more borrowing required to pay for the rising costs of servicing debt.
“Government borrowing could increase if further support is offered to households facing higher energy bills from July. Targeted measures may help mitigate costs, as schemes like the Energy Price Guarantee cost the Government an estimated £47bn between 2022 and 2024.”
