According to government sources, Chancellor Rachel Reeves is considering altering the government's fiscal rules to enable billions more in capital spending.

Speaking at the Labour conference, she criticized the Treasury's undervaluation of public investment and signaled possible changes in the upcoming budget to facilitate spending on housing, roads, and hospitals.

Reeves emphasized the need to recognize the benefits of public investment for economic growth.

Critics argue that the current rules prioritize short-term debt reduction over long-term infrastructure needs.

Alternatives being considered include excluding quantitative easing losses and moving Labour’s National Wealth Fund and GB Energy off the government’s books.

Both options could provide an additional £15 billion each.

Labour's strategy aims to stimulate long-term economic growth by updating fiscal rules to foster investment.