Rachel Reeves said a Labor government would be willing to borrow money to invest in the UK economy as she prepares to deliver the keynote speech on the second day of the party’s annual conference in Liverpool.
However, the shadow chancellor said borrowing would only take place if overall national debt levels were falling.
He said he intended to stick to his “fiscal rules” with “iron discipline”, meaning that Labor would pay daily expenses using tax revenue and that “we will reduce debt as part of our economy”.
“And only subject to that will we invest in things that will grow our economy,” he told Times Radio.
Asked if Labour’s position was that they would only borrow if debt was falling, Ms Reeves said: “We will only borrow if it is consistent with those fiscal rules which include reducing debt as part of our national economy.”
Asked again, Ms Reeves said: “Whether the debt will go down at the end of parliament. “Those are the only circumstances.”
The Conservatives have claimed that Labor is “not being honest about its short-term borrowing plans”, arguing that the opposition’s plans would actually increase debt and fuel inflation.
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