Rachel Reeves' Debt Formula Shift for Capital Spending

British finance minister Rachel Reeves plans to alter the country's debt calculation method to create space for more capital investment while adhering to current fiscal regulations. This change involves using the public sector net financial liabilities measure instead of the current public sector net debt measurement.

British finance minister Rachel Reeves is set to revamp the nation's debt calculation strategy, according to a report by the Guardian on Wednesday. This change aims to allow for greater capital expenditure without breaching existing fiscal policies.

The Guardian's report, citing an anonymous senior government official, reveals that Reeves intends to adopt the public sector net financial liabilities debt measurement. This will replace the nation's current reliance on the public sector net debt metric.

The strategic adjustment is designed to provide the necessary fiscal space for additional investments, aligning with the government's financial objectives while maintaining compliance with fiscal norms.

(With inputs from agencies.)