Finance
UK’s Sunak says borrowing for investment sensible under new budget rules
Published by maria gbaf
Posted on October 6, 2021
1 min readLast updated: January 31, 2026
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Published by maria gbaf
Posted on October 6, 2021
1 min readLast updated: January 31, 2026
UK finance minister Rishi Sunak supports borrowing for capital investment under new fiscal rules, emphasizing its potential to drive growth.
MANCHESTER, England (Reuters) – British finance minister Rishi Sunak said on Tuesday that government borrowing to fund investment was a sensible thing to allow under new fiscal rules that he is likely to announce later this month, unlike borrowing for day-to-day spending.
“Borrowing for capital investment that is going to drive up our growth is probably a sensible thing for us to be doing, particularly in an environment of slightly lower interest rates,” Sunak said an event on the sidelines of the annual conference of Britain’s ruling Conservative Party.
“Borrowing for more day-to-day spending is probably less something that you would want to have as part of your framework,” he told the event organised by the Taxpayers’ Alliance advocacy group.
(Reporting by Kylie MacLellan, Writing by William Schomberg)
The main topic is UK finance minister Rishi Sunak's stance on borrowing for investment under new fiscal rules.
Borrowing for investment is seen as sensible due to its potential to drive growth, especially in a low-interest rate environment.
Borrowing for investment focuses on long-term growth, while borrowing for day-to-day spending covers immediate expenses.
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