UK's Financial Strategy Shift: Reeves Plans New Debt Measure

Rachel Reeves, British finance minister, announced plans to revise the government's public debt measure for the upcoming budget. The alteration aims to enhance borrowing potential for investment. While specifics remain undisclosed, economists speculate the new measure could allow an additional £50 billion in borrowing capacity.

In a significant announcement, British finance minister Rachel Reeves revealed plans to alter the measure of public debt that the government targets in the forthcoming budget. The decision, aimed at easing borrowing restrictions to boost investments, was shared during a press briefing in Washington.

Reeves assured that despite the changes, the government's commitment to reducing debt as a proportion of the economy would remain intact. The finance minister emphasized that the adjustment of investment rules is designed to liberate funds for long-term returns, without fully exploiting the newly created fiscal leeway.

While specific details of the new debt measure were not disclosed, The Guardian reported that Reeves may target public sector net financial liabilities. This adjustment could potentially create an additional borrowing scope of £50 billion had it been applied in March, according to economists' estimates.

(With inputs from agencies.)