The second year is already shaping up to be just as challenging. On Tuesday, the Office for Budget Responsibility, an independent watchdog, said Britain’s public finances were in a “vulnerable position” after a series of major global economic shocks. Those include President Trump’s volatile trade policies as well as rising geopolitical conflict, which is increasing pressure on European governments to divert more of their budgets to military spending. Amid this instability, the British government is on a collision course with self-imposed limits on debt and deficits. Mr. Starmer and Ms. Reeves might have to address this by instituting policies that are likely to be unpopular among the public, or face the wrath of investors who are on edge about the government’s commitment to fiscal discipline.
