Sajid Javid eliminates Tory's tax rules with the vote to spend £ 20 billion more | Policy


Sajid Javid distorted the previous fiscal rules of the conservative party and loosened the bonds on loans amounting to £ 20 billion a year, attacking the Labor party for having planned to "saddle the country with the debt".

The chancellor has been repeatedly challenged for his decision to increase the loans and at the same time criticized the Labor Party for wanting to do the same.

He argued that the parties' approaches were "like night and day", with the Tories having "good reasons" to borrow to invest in infrastructure while the Work could not trust to manage the economy.

Javid said his two main new tax rules were that conservatives would manage a balanced current account balance by the middle of the next parliament and that infrastructure loans would not exceed 3% of GDP.

According to a third rule, the picture would be revalued if future borrowing costs rose significantly above the average.

He hinted that the conservatives still believed there would be room for the promise of tax cuts in the party's electoral manifesto and suggested that there would be enough money to commit to the Northern Powerhouse rail project.

Javid said he was now in charge of raising loans because interest rates were negative for the government and it was a time for "new rules for a new economic era".

Speaking from an air shed outside Manchester, he said: "Our first rule will be to have a current budget in balance. What we spend cannot exceed what we introduce. "

Javid said that the exception would be to borrow to build, as he promised new hospitals, schools, roads, railways and better broadband.

"Investments in long-term projects such as roads and railways will not exceed 3% of GDP," he said. "Now compared to a long-term average of about 1.8%."

The rule infringes the previous framework imposed by the Conservatories in 2017, which established a 2% rule. The data of the Office for budgetary responsibility should show a violation of the target this week, but the publication of the report was blocked by the civil service due to electoral purdah rules.

The Liberal Democrats stated that the decision "smacks of political interference".



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