Javid says would spend up to 3 percent of GDP on infrastructure

The chancellor earlier dismissed Labour spending plans as 'fantasy'.

    Chancellor Sajid Javid said he would increase government borrowing to finance infrastructure investment [Phil Noble/Reuters]
    Chancellor Sajid Javid said he would increase government borrowing to finance infrastructure investment [Phil Noble/Reuters]

    Conservative Chancellor of the Exchequer of the United Kingdom Sajid Javid said a new Conservative government would introduce a fiscal rule allowing it to spend billions of pounds more on infrastructure - up to three percent of annual economic output.

    Javid, who said it was a responsible time to invest in the country, said he would keep a balanced current budget for day-to-day spending but would borrow more to invest.

    He said investment in long-term projects like road and rail would not exceed three percent of the gross domestic product (GDP).

    SOURCE: Reuters news agency