Chancellor Officially Rewrites Fiscal Rules to Fund More Borrowing
Rachel Reeves has, now that she’s arrived in Washington, confirmed she’s rewriting the calculation of UK debt to borrow more money. This will be done by including government assets in the debt measurement. Reeves is giving herself space to borrow something like £50 billion and still claim that debt is falling in five years…
Meanwhile companies are liquidating themselves at a high rate and 10-year gilt yields have hit their highest level since Labour came to power. Maybe that’s because Reeves last year specifically ruled out changing the Tory government’s latest debt metric:
“I’m not going to try to fiddle the figures or make something different to get better results. We will use the same models the government uses.”
The “Iron Chancellor” strikes again. All eyes on the markets now…