Rachel Reeves will rewrite the government's fiscal rules in next week's budget to allow her to increase borrowing for public investment by around £50bn. Speaking to Sky News in Washington DC, the chancellor said that the self-imposed rule under which borrowing must be falling by the fifth year of economic forecasts will be redefined from the current measure of public sector net debt.
'The rule that really bites is the first rule, the stability rule, to get day-to-day spending funded by tax receipts. That's something that the previous government weren't even trying to achieve and we will show in the budget next week how we will deliver on that promise. 'The second role is about being responsible. By seizing the opportunities, but doing it in a way where we are making sure we're getting value for money for every pound of taxpayers' money spent.
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