In an interview with the BBC, Rachel Reeves, the Chancellor, emphasized the need to change how debt is measured in order to unlock billions for infrastructure projects. She stated, “We will be changing the measure of debt,” underscoring that this technical adjustment will pave the way for increased investment aimed at growing the economy and creating jobs in Britain.
As Reeves prepares for her first Budget next week, she acknowledges that it still may involve cuts to public services and possible tax increases. The government is committed to reducing debt as a share of the economy over the current parliamentary term, rather than adhering to a traditional rolling five-year plan.
This revised debt measurement is expected to permit up to £50 billion in additional borrowing for significant projects like roads, railways, and hospitals, although not all of this funding is anticipated to be allocated in the upcoming Budget. Reeves plans to share more details on this initiative on October 30.
She also assured that the Treasury will implement “guard rails” on investment spending, with oversight from the National Audit Office and the Office for Budget Responsibility, which will validate the investments to ensure they deliver value for money.
