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Today, Javid ditched three fiscal rules (probably all four because no one pays any notice to the welfare cap)
1) underlying debt will no longer be falling as % GDP
2) Forget balancing the books. That’s out the window
3) forget borrowing at 2% GDP in 2020-21
In comes
1) net investment up to 3% GDP - allowing roughly £22bn extra borrowing for investment each year
2) debt service burden lower than 6% tax revenues
3) target to balance current budget-excluding investment-three years out
Big now borrowing for investment. Debt rising (not fast)....


Not nearly as big as Labour’s new plans
It will seek
1) public sector net worth rising
2) debt service lower than 10 per cent of revenues
3)current budget balance in normal times
So. Labour similar on current spending. Much more investment. £55bn (Labour) a year not £22bn (Conservatives)

And much more scope to borrow to buy assets.

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