Reeves' Controversial Debt Rule Changes
Chancellor Rachel Reeves has stirred concerns regarding potential mortgage rate increases after announcing plans to overhaul national debt measurement, potentially freeing up £50 billion for her upcoming Budget. The move has sparked fears of financial instability and higher government borrowing costs.
Shadow Chancellor's Warning
Shadow Chancellor Jeremy Hunt has cautioned that the alteration in debt rules could lead to prolonged higher interest rates, impacting homeowners seeking to remortgage. He criticized the lack of transparency in the Chancellor's decision, warning of potential market repercussions.
Reeves' Justification
Reeves defended her decision, stating that the change in debt measurement would enable more investments in projects with long-term benefits for the country. She aims to reduce debt as a percentage of the economy over the course of this parliament.
Political Responses
Despite concerns raised by Hunt, Sir Keir Starmer dismissed fears of entrepreneurs leaving the UK due to anticipated tax hikes in the Budget. He reassured investors, stating that there should be no cause for alarm.
