Thanks for joining me. Rachel Reeves is forecast to exceed borrowing targets by almost £19bn this year as the Iran war delivers a shock to the public finances. The conflict in the Middle East means the Chancellor is at “risk of a larger overshoot” of borrowing this financial year, according to economists. The Office for Budget Responsibility (OBR) said in March that it expects the Treasury to borrow £115.5bn in 2026-27. However, Pantheon Macroeconomics said the OBR is likely to revise the figure to £134.3bn at the Budget later this year. It also warned Ms Reeves’s fiscal headroom will be cut by around £8.1bn as a result of the conflict, leaving her with a smaller cushion to deal with future shocks. Rob Wood, chief UK economist, said the onset of war in the Middle East “has effectively ripped up the playbook for the coming years”. He added: “The big picture is that the Government is facing serious fiscal pressure because of the war in Iran.…