LONDON, Oct. 24 (Xinhua) -- British Chancellor Rachel Reeves has signaled a shift in fiscal rules ahead of the upcoming Autumn Budget, multiple British media reported on Thursday.
According to the Financial Times (FT), Reeves confirmed that the changes would allow the government to borrow an additional 50 billion pounds (64.8 billion U.S. dollars) annually by the end of the decade, while still adhering to the government's self-imposed borrowing rules aimed at limiting public debt.
This new fiscal flexibility comes from adopting a metric known as "public sector net financial liabilities," which includes financial assets such as student loans.
In an article published by FT, Reeves emphasized that the fiscal reform "will be driven by this government's number one mission -- to deliver sustainable growth after a decade and a half of stagnation."
The BBC also reported that this fiscal adjustment could free up billions of pounds for infrastructure spending.
The Treasury has recently hinted at more investment in infrastructure, with Treasury Chief Secretary Darren Jones announcing the creation of a National Infrastructure and Service Transformation Authority. This new body will oversee a 10-year strategy for major projects, aligning long-term budgets and a series of Spending Reviews for investment in buildings, roads, and railways.
On Tuesday, the International Monetary Fund (IMF) revised its forecast for UK economic growth, raising it from 0.7 percent to 1.1 percent for this year. However, the IMF also cautioned the UK to strike a balance between necessary public investment and avoiding excessive debt levels. (1 British pound = 1.29 U.S. dollar)
