The Chancellor of the Exchequer, Sajid Javid has announced three fiscal rules to be implemented to drive a “new economic era”.
In a speech delivered in Manchester, he set out rules to “control borrowing, to control debt, and to control debt interest” – describing them as “new rules for a new economic era”.
The chancellor announced his intentions to increase borrowing to pay for new hospitals and railway projects but has stated “what we spend cannot exceed what we bring in”.
The chancellor announced his intentions to increase borrowing to pay for new hospitals and railway projects but has stated “what we spend cannot exceed what we bring in”. Credit: Getty Images
The pledge came as the Conservative Party kicked start their election campaign ahead of next month’s vote, which is being described a the most important election in a generation.
Meanwhile, Labour’s Shadow Chancellor John McDonnell also announced his own set of economic pledges in an attempt to entice voters.
John McDonnell, speaking in Liverpool, said Labour would spend £150 billion on schools, hospitals and homes – with an “irreversible shift” of power and wealth from London to the working people of Britain.
The shadow chancellor made the bold promise to “investment on a scale never seen before” to overhaul infrastructure in all areas of the UK. Credit: Getty Images
Mr McDonnell, accompanied by Labour leader Jeremy Corbyn, setting out Labour’s plans said: “Power is coming home, back to the people.
“That means change, real change, and it means investment on a scale never seen before in this country and certainly never seen before in the north and outside of London and the south east.
The shadow chancellor made the bold promise to “investment on a scale never seen before” to overhaul infrastructure in all areas of the UK.
In doing so he denied that he was simply copying Mr Javid’s plans, instead describing his initiative as representing “sensible stewardship”.
The Institute of Fiscal Studies (IFS) said both parties were proposing substantial increases in government spending, with the Tories’ plans representing the highest level sustained at any point in the last 40 years.
The IFS said Labour plans to spend an extra £55 billion per year on investment over the next five years, would more than double public investment spending – taking UK government investment spending from around the bottom of the international league table to around the top.
Ben Zaranko, research economist at IFS, said: “Both parties’ plans would represent a sharp change in policy, and Labour’s plans are especially ambitious.”
Rain Newton-Smith, chief economist at the Confederation of British Industry (CBI), said: “Any new spending must be planned responsibly to be sustainable, and more details will be needed on how both Labour’s and the Conservatives’ plans will be funded.
“But success will be built on more than money – businesses’ main message is simple: so much more can be achieved by working with business, not against it.”
General Government gross debt was £1,821.3 billion at the end of the financial year ending March 2019, according to the latest figures from the Office For National Statistics.
With just a little over a month left until the election, most polls continue to have Boris Johnson’s Conservative Party out in front, with the most recent YouGov statistics putting the incumbent 36% of the vote, with Labour (25%) and Liberal Democrats (17%) trailing behind.
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HeadlineTories and Labour promise to increase borrowing to boost investment
Short HeadlineTories and Labour set out economic agendas
StandfirstThe Conservatives will "control borrowing, to control debt, and to control debt interest."
The Chancellor of the Exchequer, Sajid Javid has announced three fiscal rules to be implemented to drive a “new economic era”.
In a speech delivered in Manchester, he set out rules to: “control borrowing, to control debt, and to control debt interest” – describing them as “new rules for a new economic era”.
The Chancellor announced his intentions to increase borrowing to pay for new hospitals and railway projects but has stated “what we spend cannot exceed what we bring in”.
The pledge came as the Conservative Party kicked start their election campaign ahead of next month’s vote, which is being described a the most important election in a generation.
Meanwhile, Labour’s Shadow Chancellor John McDonnell also announced his own set of economic pledges in an attempt to entice voters.
The MP for Hayes and Harlington made the bold promise to “investment on a scale never seen before” to overhaul infrastructure in all areas of the UK.
In doing so he denied that he was simply copying Javid’s plans, instead describing his initiative as representing “sensible stewardship”.
With just a little over a month left until the election, most polls continue to have Boris Johnson’s Conservative Party out in front, with the most recent YouGov statistics putting the incumbent party on 36% of the vote, with Labour (25%) and Liberal Democrats (17%) trailing behind.
The Chancellor of the Exchequer, Sajid Javid has announced three fiscal rules to be implemented to drive a “new economic era”.
In a speech delivered in Manchester, he set out rules to “control borrowing, to control debt, and to control debt interest” – describing them as “new rules for a new economic era”.
The chancellor announced his intentions to increase borrowing to pay for new hospitals and railway projects but has stated “what we spend cannot exceed what we bring in”.
The chancellor announced his intentions to increase borrowing to pay for new hospitals and railway projects but has stated “what we spend cannot exceed what we bring in”. Credit: Getty Images
The pledge came as the Conservative Party kicked start their election campaign ahead of next month’s vote, which is being described a the most important election in a generation.
Meanwhile, Labour’s Shadow Chancellor John McDonnell also announced his own set of economic pledges in an attempt to entice voters.
John McDonnell, speaking in Liverpool, said Labour would spend £150 billion on schools, hospitals and homes – with an “irreversible shift” of power and wealth from London to the working people of Britain.
The shadow chancellor made the bold promise to “investment on a scale never seen before” to overhaul infrastructure in all areas of the UK. Credit: Getty Images
Mr McDonnell, accompanied by Labour leader Jeremy Corbyn, setting out Labour’s plans said: “Power is coming home, back to the people.
“That means change, real change, and it means investment on a scale never seen before in this country and certainly never seen before in the north and outside of London and the south east.
The shadow chancellor made the bold promise to “investment on a scale never seen before” to overhaul infrastructure in all areas of the UK.
In doing so he denied that he was simply copying Mr Javid’s plans, instead describing his initiative as representing “sensible stewardship”.
The Institute of Fiscal Studies (IFS) said both parties were proposing substantial increases in government spending, with the Tories’ plans representing the highest level sustained at any point in the last 40 years.
The IFS said Labour plans to spend an extra £55 billion per year on investment over the next five years, would more than double public investment spending – taking UK government investment spending from around the bottom of the international league table to around the top.
Ben Zaranko, research economist at IFS, said: “Both parties’ plans would represent a sharp change in policy, and Labour’s plans are especially ambitious.”
Rain Newton-Smith, chief economist at the Confederation of British Industry (CBI), said: “Any new spending must be planned responsibly to be sustainable, and more details will be needed on how both Labour’s and the Conservatives’ plans will be funded.
“But success will be built on more than money – businesses’ main message is simple: so much more can be achieved by working with business, not against it.”
General Government gross debt was £1,821.3 billion at the end of the financial year ending March 2019, according to the latest figures from the Office For National Statistics.
With just a little over a month left until the election, most polls continue to have Boris Johnson’s Conservative Party out in front, with the most recent YouGov statistics putting the incumbent 36% of the vote, with Labour (25%) and Liberal Democrats (17%) trailing behind.
