Oil falls below $100 a barrel on reports Iran ‘makes strait of Hormuz offer’; UK government borrowing paints ‘dismal picture’ – business live

The rising cost of servicing the UK national debt pushed up borrowing last month How much ‘headroom’ might John Healey still have to keep within the government’s fiscal rules? That’s the question dogging Westminster and the City. “The chancellor has probably lost about half the headroom he inherited, leaving it between £10bn to £15bn.

As long as the headroom is in double figures, he will probably be able to avoid topping it up, but the drop in headroom means any additional day-to-day spending, such as on defence or cost of living, will have to be paid for by higher taxes. “What’s more, if the recent rise in energy prices is sustained through the next few months, household energy bills could rise by another 25% in January, which would take them above the level that the previous government capped them at. That would only further increase the pressure to act on cost of living by temporarily subsiding energy bills. “The PM and chancellor…