1010 GMT - The U.K. government's fiscal position was worse than expected heading into the energy crisis, leaving less scope to support households and businesses, Ruth Gregory at Capital Economics says in a note. Public borrowing was 14.3 billion pounds in February, above Capital Economics's forecast of 7.5 billion pounds. "February's public finances figures showed that the fiscal position was worse than expected even before the full impact of the surge in energy prices is felt," Gregory says. Borrowing could soon rise further, while weaker growth and higher inflation could erode roughly half of the government's fiscal headroom. Any fiscal support package to help households and businesses "will probably need be smaller than the measures introduced in 2022," Gregory says. (don.forbes@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 06:10 ET (10:10 GMT)
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