Rachel Reeves should invest extra money in economic growth, not U-turns, former adviser warns
Rachel Reeves should spend any extra money in the Budget on investment — such as on major rail schemes — to help drive economic growth rather than funding policy U-turns, a former adviser has said. As the chancellor scrabbles to find billions for a potential hat-trick of benefit U-turns, Jim O’Neill, a former Treasury minister who quit the Conservatives and later advised Ms Reeves, told The Independent that moves to fund policy reversals were driven “by the politics” of the situation. “I would like to see any money available in (next month’s) spending review or Budget to be spent on positive multiplier investments,” he said. These are projects that generate multiple pounds for the economy for every £1 spent. These would include the Northern Powerhouse Rail scheme, Lord O’Neill said. It is designed to link major cities in the North, following warnings it takes longer to travel between them than it does to get to Paris. Pressure is mounting on the Chancellor over the impact of Labour’s recent tax hike on the cost of living (PA) More