Rachel Reeves said a Labour government would be prepared to borrow money to invest in the UK economy as she prepares to deliver he keynote speech on the second day of the party’s annual conference in Liverpool.

However, the shadow chancellor said borrowing would only go ahead if overall levels of national debt were falling. 

She said she intended to stick to her “fiscal rules” with “iron disicipline”, namely that Labour would pay for day-to-day expenditure using tax receipts and that “we will get debt down as a share of our economy”

“And then only subject to that will we invest in things that are going to grow our economy,” she told Times Radio. 

Asked if Labour’s position was that it would only borrow if debt was falling, Ms Reeves said: “We will only borrow if it is consistent with those fiscal rules which includes getting debt down as a share of our national economy.” 

Asked the question again, Ms Reeves said: “If the debt is coming down by the end of the parliament. That is the only circumstances.” 

The Tories have claimed Labour “aren’t being honest about their short-term borrowing plans”, arguing the opposition’s plans would actually increase debt and fuel inflation.

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