UK finance minister restores 9.9 billion pound fiscal buffer

LONDON, March 26 (Reuters) - British finance minister Rachel Reeves said on Wednesday that she had rebuilt a 9.9 billion pound ($12.8 billion) fiscal buffer that was wiped out by weaker economic forecasts and rising borrowing costs since her first full budget last year.

The public finances have been strained by slow economic growth and higher-than-expected borrowing costs in financial markets driven largely by the policies of U.S. President Donald Trump.

Without measures taken by the government, Reeves said the government would have faced a deficit of 4.1 billion pounds.

"As a result of the steps that I am taking today I can confirm that I have restored in full our headroom," she told parliament in a fiscal update speech.

Reeves is aiming to balance day-to-day public spending with tax revenues by 2030.

In her first full budget in October, Reeves left herself 9.9 billion pounds of leeway to hit that target, lower than the average headroom of finance ministers dating back to 2010.

($1 = 0.7755 pounds)