MNI BRIEF: No UK Fiscal Rules; Borrowing To Fall Back

It was not sensible to for the UK to unveil new fiscal rules in the UK Budget but instead set out a broad brush fiscal aims, UK Chancellor of the Exchequer Rishi Sunak said Wednesday, adding that he would pay close attention to the affordability of debt and warning of the risks from rising debt interest costs if rates rise, as outlined to MNI by the Resolution Foundation in an interview.

The Office for Budget Responsibility's borrowing forecasts showed borrowing falling from 17% of GDP this fiscal year to 10.3% in 2021-22 on down to 4.5% in 2022-23, 3.5% in 2023-24 and 2.8% in the final year of the forecast, 2025-26. Sunak cited the recent spike in yields as a warning of the risks to the UK of running large deficits.