Reeves Defends Economic Plans, Says Borrowing Is Under Control
LONDON — Chancellor Rachel Reeves has defended the government’s economic strategy, saying it is careful, rules-based and does not rely on excessive borrowing, despite ongoing scrutiny from political opponents and market commentators.
Reeves said her approach follows strict fiscal rules, aiming to balance day-to-day spending with revenues while ensuring national debt starts to fall as a share of the economy over time. She acknowledged the UK’s £2.6 trillion debt but argued it must be managed responsibly, warning against both panic-driven decisions and reckless borrowing.
Recent figures show government borrowing has been lower than expected, helped by stronger tax receipts, though critics note that overall debt levels remain high. Supporters say Reeves’s stance has helped calm markets, with borrowing costs easing after signals of fiscal discipline.
Opposition figures remain divided, with some accusing the government of being overly cautious, while others warn that tax rises and future borrowing could still strain public finances.
Looking ahead, Reeves has pledged to steer a middle course — avoiding austerity while keeping borrowing under control — as economic uncertainty continues to shape the UK’s financial outlook.