UK Chancellor Rachel Reeves has received recommendations to overhaul the country’s fiscal rules in an effort to enhance productivity through sustained public investment. Advisers suggest that allocating 4–5% of GDP toward key areas such as infrastructure, education, and innovation could lay the foundation for long-term economic growth.

The proposed fiscal changes aim to shift the focus from short-term deficit targets to more flexible, forward-looking rules that align with the country’s productivity goals. This would allow for greater long-term capital spending without immediately triggering fiscal rule violations. The advisory framework emphasizes that a sustained level of investment is essential to close structural gaps and…