Rachel Reeves' borrowing rules lead to dysfunctional policymaking, claims IFS

Rachel Reeves warned ‘dysfunctional’ fiscal rules are hammering economy

Rachel Reeves has been dealt a scathing assessment of her economic policy by a top think tank, which likened her approach to a driver who was “watching the speedometer” while ignoring other conditions. The Chancellor is facing calls to scrap the self-imposed fiscal rules that prevent her ...

Rachel Reeves' borrowing rules lead to dysfunctional policymaking, claims IFS

The think tank suggests the chancellor's fiscal rules need to shift the focus from one key figure.

Reeves warned 'dysfunctional' fiscal rules are hammering economy

Rachel Reeves has been dealt a scathing assessment of her economic policy by a top think tank, which likened her approach to a driver who was “watching the speedometer” while ignoring other conditions. The Chancellor is facing calls to scrap the self-imposed fiscal rules that prevent her from borrowing to pay for day-to-day spending and require debt to fall as a percentage of GDP by 2029/30. Economists at the Institute for Fiscal Studies (IFS) s…