Budget 2024: Commons clash on ‘higher mortgage rates’ from Labour’s Rachel Reeves borrowing billions to invest [Video]

Rachel Reeves was challenged in the Commons on whether borrowing tens of billions of pounds more would push up mortgage rates in Britain.

As Ms Reeves and her team took questions in the Commons the day before the Budget, shadow Treasury minister Alan Mak said: “Last Wednesday in Washington, the Chancellor announced changes to the debt rules to allow Labour to borrow more.

“However, published Treasury advice says that increasing borrowing risks interest rates staying higher for longer.

“Does the Chancellor agree with her Treasury civil servants?”

Ms Reeves responded: “I was very pleased that last week when I was in Washington, the International Monetary Fund said how important it was that countries including the UK borrow to invest in our capital infrastructure.

“Under the plans that we inherited from the previous government, capital spending as a share of GDP is due to fall from 2.6 per cent of GDP to 1.7 per cent.

“If those decision were to go forward, …