In a new report, the centre-left Institute for Public Policy Research (IPPR) urged Reeves to target public sector net worth as her debt measure to unlock as much as £57bn in additional headroom for investment, emphasizing the importance of considering the value of public assets such as roads and hospitals alongside existing liabilities.
Sources close to the Treasury indicated that Chancellor Rachel Reeves must decide whether to adjust the government’s fiscal rules in order to potentially release £57bn for infrastructure spending, a crucial deliberation before the budget announcement on 30 October.
Reeves confirmed the need for flexibility, stating, 'We’ll set out details of the fiscal rules at the budget, but we have got to make sure we unlock that space for capital investment,' highlighting her commitment to increasing public investment.
The upcoming budget represents a significant mark for Labour, being the first to be presented by a Labour chancellor in over 15 years, indicating a possible shift in fiscal policy direction.
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