Sajid Javid urges successor Sunak not to abandon fiscal rules in Tory manifesto

Sajid Javid, the former UK chancellor, used his speech in the budget debate to urge Rishi Sunak not to abandon the fiscal rules that he (Javid) announced during the general election campaign.

Under these rules, that were included in the Conservative manifesto, the party committed to:

1) not borrowing to fund day-to-day spending;

2) capping average net public sector net investment at 3% of GDP; and

3) ensuring that debt interest payments don’t exceed 6% of government revenue.

Sunak did not formally abandon the three rules. But he said that he would review the fiscal framework, and report back in the autumn, implying that he wants to loosen Javid’s rules.

Echoing the point made by Theresa May in her speech earlier Javid said the government should not abandon its reputation for fiscal responsibility. He urged the government “get on to the front foot to support the financially vulnerable, who will be as fearful for their economic security as they are for their health”.

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