In a budget announced today by the Chancellor, Rachel Reeves MP (Leeds West and Pudsey/Labour), a “stability rule” is introduced to reign in public spending and take back control of government finances.
“The stability rule (which is the government’s fiscal mandate) requires that the current budget must be in surplus in 2029-30, until 2029-30 becomes the third year of the forecast period…Balancing the current budget means that the government’s day-to-day spending is met by revenues and so ensures that, over the medium term, borrowing is only for investment. This means future generations will not be burdened with the costs of public services today.”
It means in future, if adhered to, any public service will be funded by income recovered by the government rather than by more and more borrowing, which is already beyond our ability to repay.