Fiscal rule changes will allow much-needed investment particularly in energy generation

Ahead of the Budget the Chancellor Rachel Reeves has said she will change the Treasury’s fiscal rules allowing her to borrow more money specifically to invest in infrastructure.

 

Prospect wrote to the Chancellor recently calling for such a change to release essential finance for new low carbon energy generation.

Mike Clancy, General Secretary of Prospect, said:

“Reported changes to the government’s fiscal rules, which Prospect has been calling for, are welcome and will allow much-needed investment particularly in energy generation.

“Ramping up investment quickly is vital if the UK is to come even close to meeting its goals on low carbon generation. Part of the ongoing plan must be a final investment decision on Sizewell C.

“The capital spending that should flow from these changes will boost growth, increase our energy security, and create a profit for the exchequer over the long-term.”