Chancellor is considering a change to Government’s borrowing rules at the Budget, which would open the door to more investment spending by the state
Moves to loosen rules that limit the amount of money the Government can borrow at next month’s Budget risk interest rates staying higher for longer and banks hitting the brakes on recent mortgage rate cuts, the Chancellor has been warned.
Rachel Reeves is considering changes to her fiscal rules – rules that govern how much she can spend and borrow – at October’s Budget.
In its manifesto earlier this year, Labour said it would follow a rule that debt must be falling as a share of the economy by the fifth year of a “forecast period,” but there are suggestions that Reeves could change the definition of debt from the one used by the previous Government.