Rachel Reeves should scrap her self-imposed rules on debt and borrowing in order to halt the “dysfunctional” policymaking behind Britain’s economic uncertainty, the Institute for Fiscal Studies (IFS) has said.
In a major blow to the chancellor, the think tank said the current system “isn’t delivering” and that Reeves’s fixation on sticking to her fiscal boundaries – which prevent her from borrowing to pay for day-to-day spending, and require debt to fall as a percentage of GDP by 2029/30 – means she could break her promise to deliver sustainable public finances.
