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Rachel Reeves’ £16bn Fiscal Headroom Could Be Wiped Out By Iran War | Simon Pittaway
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April 22, 2026
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8:05Now Playing“What we've modelled is a severe but also plausible downside scenario for the public finances.”
The prolonged disruption in the Strait of Hormuz could drive higher inflation, weaker growth and rising borrowing costs, slashing the UK’s fiscal headroom by £16bn and leaving the government far more exposed to future economic shocks, says senior economist at the Resolution Foundation Simon Pittaway.
Simon Pittaway was speaking to Stephen Sackur on The Times at One. Listen live on Times Radio every Monday-Thursday from 1-2pm.
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