British media: The UK Chancellor is focusing on reform measures to curb fiscal volatility

ChainCatcher news, according to a report by the Financial Times, as concerns grow over the volatility of UK economic policy among investors, UK Chancellor of the Exchequer Reeves is exploring reforms to her budgetary framework to avoid a sudden spring fiscal repair plan again.

According to informed sources, Reeves is considering reform proposals put forward by the International Monetary Fund, which aim to "reduce the pressure for frequent adjustments to fiscal policy." Meanwhile, she has also reiterated her commitment to holding only one fiscal announcement per year. The International Monetary Fund suggested reforms for the UK in May this year to ensure that minor deviations from fiscal rules do not necessitate "corrective fiscal measures" between two budgets. The organization also indicated that the UK could consider assessing compliance with fiscal rules only once a year, rather than the current twice a year.

A City of London insider stated, "This is something the Treasury is considering—this needs to be done. Constantly swinging between forecasts every six months is simply not a viable way to formulate fiscal policy in this era of high global economic instability. The bond market would not only not oppose this but would actually welcome such reforms."