December 25, 2024

UK Finance Minister Rachel Reeves pledged to make “necessary”, “urgent” and “extremely difficult” choices to restore the country’s economic stability.

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UK Finance Minister Rachel Reeves confirmed on Thursday that she intends to change the country’s fiscal rules in the October budget, a move aimed at Freeing up billions of pounds for investment.

it ended weeks guess Ahead of the Labor government’s much-anticipated first budget, Reeves is due to deliver it on October 30.

Prime Minister Keir Starmer has previously warned that the budget “will be painful” and the government will have to make “significant demands” of the public to address what he described as a “black hole” in public finances.

written in financial times On Thursday, Reeves said her “investment rules” would “reduce the debt as a share of our economy.”

She added that the change “will create space for increased investment in the fabric of our economy and ensure we do not see the decline in public sector investment planned by the previous government.”

Reeves did not specify what investment rules would change, but has report Instead of public sector net debt, the Treasury could use public sector net financial liabilities (PSNFL) as a measure of UK debt.

The PSNFL indicator takes a broader look at the government’s balance sheet than public sector net debt, including financial assets and liabilities.

A Treasury spokesman declined to comment when asked whether changes to fiscal rules would target the PNFL in the UK’s debt measure.

The Institute for Fiscal Studies is an influential think tank, explain Financial rule changes for the PSNFL on September 30 will provide the government with up to £50 billion ($64.8 billion) in additional space.

Reeves confirmed the changes to Britain’s fiscal rules on the sidelines of the International Monetary Fund’s annual meeting in Washington.

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