LONDON, Nov 26 - Britain's government will have almost 22 billion pounds ($28.9 billion) in fiscal headroom in five years' time, according to estimates by the country's budget watchdog published on its website on Wednesday ahead of finance minister Rachel Reeves' budget statement.
In March, the Office for Budget Responsibility (OBR) forecast the headroom - the amount of extra spending or tax cuts possible while staying within the government's self-imposed budget rules - was 9.9 billion pounds.
A Reuters poll of economists published on Tuesday pointed to a median forecast for an increase in the headroom to just under 17 billion pounds.
Reeves is expected to announce tens of billions of pounds of tax increases on Wednesday in a budget that will put her credibility on the line both with bond investors and with left-wing lawmakers demanding more welfare spending.
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