The chancellor has set out plans to rewrite the government's fiscal rules in next week's budget. Rachel Reeves said there will be a change to the way debt is measured which will allow her to increase borrowing for public investment. "We will pay for day-to-day spending through tax receipts - that is something the previous government didn't even try to do let alone meet," she said. Report by Kennedyl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00I welcome what the International Monetary Fund have said about the importance of governments
00:05investing in the opportunities that present themselves. I'll be setting out in the budget
00:11next week two fiscal rules that this government will stick to. The first is the most binding and
00:17that is that we'll pay for day-to-day spending through tax receipts. That's something that the
00:21previous government didn't even try to do, let alone meet, but it's so important for the
00:26sustainability of public finances that we're not borrowing just to fund the day-to-day operations
00:32of government. But I can confirm today that our second rule, our investment rule, will change the
00:38way in which we measure government debt, so we take into account assets not just the costs of
00:46investment. And that is really important to do what the International Monetary Fund
00:50has said governments should be doing.