The shadow chancellor follows his Tory counterpart in delivering speech outlining economic vision
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McDonnell says Labour will exclude investment from its borrowing targets.
Our fiscal rule for the next parliament will exclude borrowing for investment from our borrowing targets. It will mandate us to deliver an improvement in the overall balance sheet by the end of the parliament. So that when we invest in the infrastructure our country desperately needs, it’s recognised both as a cost and as a benefit.
Yes – adding to the government’s debt but also adding to the government’s assets and strengthening our public sector to deal with the future. With the rents on our new council homes and the electricity produced by our public sector energy agencies set against the cost of servicing the debt issued to build them. And a ceiling on that debt servicing cost – in normal times – of 10% of tax revenue.
McDonnell says the OBR forecasts there were expected to be published today (see 9.05am) would have shown an increase in borrowing.
The Office for Budget Responsibility’s restated forecast, which was meant to be published today, was expected to show tens of billions more borrowing
Because the Tories designed an expensive student loan system that hid the costs off the books.
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