Rachel Reeves confirms changes to UK fiscal rules to boost government investment

Public sector net financial liabilities

Chancellor Rachel Reeves has confirmed she will make alterations to the UK’s current fiscal rules to facilitate more borrowing for investment and ensure day-to-day spending is matched by revenues.

In a letter published on the Financial Times, Reeves wrote that her fresh fiscal framework "will provide the stability on which growth depends". She added that, in the upcoming Autumn Budget, the changes she will announce will seek to ensure day-to-day spending is matched by revenues and debt falls as a proportion of the UK's economy.  The latter is a measure that aims to "make space for increased investment in the fabric of our economy, and ensure we do not see the falls in public sector investment that were planned under the last government", the letter read.  Chancellor Rachel R...