Brown to re-write Govt borrowing rules - papers 18 July

Gordon Brown's strict self-imposed "sustainable investment" rule, which limits Government debt to 40% of national income, is likely to be ditched amid difficulties caused by the credit crisis. The rule was laid down by Mr Brown when he became Chancellor in 1997 as a signal of Labour's intention for "prudence" in economic affairs. The new, looser framework, which is set to be announced in the pre-Budget report this Autumn, would allow the Government to borrow more to avoid a £10bn hole in the public purse which would otherwise have to be made up by increased tax revenues. ASIAN AND MI...