A post by @FirstSquawk on X.

UK Chancellor Rachel Reeves said the government should deploy fiscal headroom only when necessary and rebuild it when conditions allow, framing budget flexibility as a reserve rather than a permanent spending source. The remark signals the Treasury's intent to preserve room against future shocks while leaving the door open to targeted stimulus if growth weakens. It matters because gilt markets and sterling are sensitive to any hint that headroom will be spent rather than banked, with fiscal credibility already under scrutiny after recent budget turbulence. Investors will watch the next fiscal update and Office for Budget Responsibility forecasts for whether the chancellor actually draws down that buffer or continues to rebuild it.