Chancellor Rachel Reeves was encouraged by the International Monetary Fund to rip up existing debt rules to carry out more public investment has said the UK’s debate on whether to tear up rules on debt and how much the Government can borrow is a welcome one as public investment was “badly needed”.
Britain “is living with interest rates that are close to US interest rates, but it is also living with growth rates that are not close to US growth rates,” he said. “Given challenges associated with the energy transition, new technologies, technological innovation and much else, public investment is badly needed.”
“We believe it’s very important to bring public debt under control. It’s very important to control for public debt risks,” Gaspar said.
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