Rachel Reeves could borrow £80bn over next five years, lenders say
Rachel Reeves could borrow an extra £80bn to fund government spending on infrastructure and green energy, according to lenders.
The Chancellor is trying to convince investors in UK government bonds, also known as gilts, that they can support tens of billions of pounds in additional borrowing without triggering a Liz Truss-style market panic.
An assessment by Lloyds Banking Group has now found they would be willing to lend the government £80bn more of gilts over the next five years “for productive infrastructure investment”.
The fresh borrowing could help plug an alleged £22bn “black hole” in the public finances, on top of spending cuts and tax rises expected to be unveiled in Labour’s maiden Budget on 30 October.
