McDonnell Promises To Balance The Books With Fiscal Credibility Rule | LabourList

by / Friday, 11 March 2016 / Published in News

John McDonnell will today promise that Labour will manage public spending with “discipline” and aim to balance the books in power – but won’t hesitate to borrow billions in order to invest. In a major pre-Budget speech this morning, the Shadow Chancellor will set out how he intends to win back public trust in Labour on the economy, as he sets out a “Fiscal Credibility Rule” that all party policy would adhere to. The rule comes after discussions with both Labour’s Economic Advisory Committee and the Shadow Cabinet. “We believe that, in the medium to long term, governments should not need to borrow to fund their day-to-day spending”, McDonnell will say. “And that is why we would commit to always eliminating the deficit on current spending in five years, as part of a strategy to target balance on current spending over a rolling, five-year period.” McDonnell says that the “centrepiece” of the Fiscal Credibility Rule is to “ensure that Labour eliminates the government’s deficit in a fair

Source: McDonnell Promises To Balance The Books With Fiscal Credibility Rule | LabourList

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