Rachel Reeves Considers New Fiscal Rules for Infrastructure Spending
Rachel Reeves must choose by Wednesday whether to alter fiscal rules to unlock up to £57 billion for infrastructure at this month’s budget. The Treasury needs this decision for the 30 October budget to proceed. Advisers suggest using measures like public sector net worth, though some doubt asset valuations and market reactions may vary.
Rachel Reeves, the Chancellor, must decide by Wednesday whether to adjust fiscal rules, which could release up to £57 billion for infrastructure projects.
This decision is crucial as the Treasury prepares for major measures in the upcoming budget on October 30.
The OBR is awaiting Reeves' plan to forecast economic impacts and share findings by next Monday.
Influential thinktank IPPR advises targeting 'public sector net worth' to unlock spending.
Critics question asset valuation accuracy, and markets remain cautious.
A final decision will align with Labour's manifesto commitments, balancing spending with debt reduction, with possible IMF and market support.
This decision is crucial as the Treasury prepares for major measures in the upcoming budget on October 30.
The OBR is awaiting Reeves' plan to forecast economic impacts and share findings by next Monday.
Influential thinktank IPPR advises targeting 'public sector net worth' to unlock spending.
Critics question asset valuation accuracy, and markets remain cautious.
A final decision will align with Labour's manifesto commitments, balancing spending with debt reduction, with possible IMF and market support.
