Chancellor Rachel Reeves Unveils New Debt Rules

Chancellor Rachel Reeves is set to announce changes to the UK's debt rules in the upcoming budget, allowing for increased borrowing to invest in clean energy and infrastructure projects. The proposed shift to measuring public sector net financial liabilities (PSNFL) aims to unlock up to £53 billion in additional funding, despite concerns from former Chancellor Jeremy Hunt that this could lead to higher mortgage costs. Reeves assures that safeguards will accompany this change, focusing on responsible spending alongside potential tax increases to address a £22 billion gap in public finances. The announcement comes as the UK government's borrowing costs have risen, with market reactions indicating uncertainty regarding the new fiscal approach. Reeves aims to present the budget as an