Rachel Reeves will seek to fund around £20 billion a year of extra investment in Britain with increased borrowing, it was reported on Thursday. The Chancellor is set to tear up her fiscal rules, to allow her to borrow more long term, while also imposing stricter limits on in year spending.

Chancellor Rachel Reeves has hinted at a “challenging” Budget as she prepares to borrow tens of billions of pounds to invest in Britain's crumbling infrastructure. In a new video, posted on X today (24 October),

As your salary is reduced, you pay less income tax and if the money goes to your pension you avoid paying the NI charge that you would have paid had it all gone to your salary. This is because currently there are no NI charges for pension money, while you pay NI on your salary.

British finance minister Rachel Reeves plans to change how public debt is measured in the upcoming budget to enable increased investment borrowing. While she promises debt reduction, Reeves declines to reveal the new measurement but emphasizes borrowing strictly for long-term investment rather than day-to-day spending.

Rachel Reeves will reportedly unveil a major change to Labour’s fiscal rules at the budget on 30 October by borrowing billions for infrastructure investment. Following weeks of speculation, the chancellor will reveal her plans to change Britain’s debt rules at the International Monetary Fund’s (IMF) annual meeting in Washington on 24 October.