The chancellor yesterday confirmed her rules will âmake space for increased investment in the fabric of our economyâ, amid widespread expectation she will change the way debt is measured.
She said her âinvestment ruleâ would âget debt falling as a proportion of our economyâ. She wrote in the Financial Times on Thursday: âThat will make space for increased investment in the fabric of our economy, and ensure we donât see the falls in public sector investment that were planned under the last governmentâ,
She is expected to change the measure of debt to one which includes a wider range of state assets and liabilities. Her predecessor Jeremy Hunt immediately criticised the plans, adding that the decision to change the definition of debt used in the fiscal rules will âpunish families with mortgagesâ.
He posted on X: âThe consistent advice I received from Treasury officials was always that increasing borrowing meant interest rates would be higher for longer â and punish families with mortgages. Whatâs even more remarkable is that the chancellor hasnât seen fit to announce this major change to the fiscal rules to parliament. The markets are watching.â
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