The UK Chancellor of the Exchequer, Rachel Reeves, confirmed plans to amend fiscal rules in the October budget to free up billions of pounds for investment. This move will put an end to speculation ahead of the Labour government's first budget, which Reeves will present on October 30.
Prime Minister Keir Starmer previously warned that the budget would be "painful" due to the need to address the public finance deficit.
Reeves noted that her "investment rule" would reduce debt as a percentage of the economy and increase investment in infrastructure. The Treasury is expected to shift to calculating debt by the Public Sector Net Financial Liabilities (PSNFL) measure.
