Moody's says UK's moves to restore budget headroom reflect difficult fiscal outlook

March 28 (Reuters) - Ratings agency Moody's on Friday said the UK government's moves to restore budget headroom reflect a difficult fiscal outlook, although the timely reaction to a deterioration in public finances is positive.

"There is a significant risk that the chancellor will have to cut spending further or include new revenue-raising measures in the next budget in October," Moody's said in response to British finance minister Rachel Reeves' Spring Statement.