Summary
- A recent report by the Office for Budget Responsibility (OBR) reveals that government investments take a long time to yield benefits.
- Rachel Reeves, confronted with fiscal rules inherited from the Conservative Party, must focus on reducing national debt within five years.
- Reeves has limited room to spend in the upcoming budget due to stringent fiscal rules, but alternative measures could provide more flexibility.
- Changing the time frame of debt reduction targets or focusing on other measures of debt could allow for more investment without violating fiscal rules.