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IFS warns Reeves against ramping up public debt as chancellor weighs change to fiscal rules
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In a report published today (10 October), the think tank said Reeves has «inherited an unenviable public finance situation» but needs to ensure «public sector net debt cannot be allowed to rise indefinitely». The IFS noted that one of the options Reeves could pursue would be to target a «broader measure» of the government balance sheet, such as targeting public sector net financial liabilities (PSNFL) or public sector net worth (PSNW). According to the think tank, each of these measures would create an additional borrowing capacity of £53bn and £57.8bn, respectively. Think-tank IFS...
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