Rachel Reeves, the UK's Chancellor of the Exchequer, is staring down a grim financial situation this autumn. Government borrowing has surged beyond forecasts, hitting the second-highest June figure on record—largely thanks to soaring interest payments on bonds. This means Reeves is now facing the unenviable task of drafting a brutal budget, likely packed with tough decisions on taxes or spending cuts.

Editor’s Note: When the government borrows more than expected, it’s not just a spreadsheet problem—it squeezes public spending, raises the specter of higher taxes, and makes everything from infrastructure projects to social programs harder to fund. For ordinary people, this could mean fewer services or tighter household budgets down the line. Reeves’ next moves will shape how much pain gets passed along.