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UK's Sunak says borrowing for investment sensible under new budget rules

UK's Sunak says borrowing for investment sensible under new budget rules
UK's Sunak says borrowing for investment sensible under new budget rules   -   Copyright  Thomson Reuters 2021
By Reuters

MANCHESTER, England – 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.