New public finances plan

Sunak set to boost public finances with new fiscal rulesRishi Sunak is reportedly planning to stop the Government borrowing money to pay for day-to-day spending within the next three years, with the Chancellor looking to improve public finances that have taken a hit amid the pandemic. He is expected to set out new fiscal rules in the autumn Budget as he seeks to get Government borrowing back under control and bring the national debt down by the middle of the decade. This comes as Government borrowing surged during the coronavirus crisis, with public sector borrowing estimated to have been £78bn in the financial year to July - the second-highest number recorded for that period since records began - but £61.6bn less than in the same period the year before. Office for National Statistics data shows that national debt stood at more than £2.2trn at the end of July. This is equivalent to 98.8% of UK GDP, the highest ratio since the 99.5% recorded in March 1962.