The Chancellor is considering plans to change the Treasury's fiscal rules to curb tax increases in his Budget.
New rules on how Britain's debt is calculated could give Rachel Reeves up to £57bn of investment spending ahead of Labour's first Budget in 14 years on October 30th. 
This comes as the Prime Minister seeks to plug a £22bn hole in Britain's finances left by the previous Conservative government.
Labor has pledged not to increase value added tax, income tax, national insurance tax or corporation tax, which are the Treasury's biggest sources of income.
However, similar guarantees are not provided regarding capital gains tax, inheritance tax, and pension tax.
Last week, it was revealed that Mr. Reeves was considering raising the capital gains tax to 39% from the current 28%.
Current Treasury regulations stipulate that debt, the total amount owed by the government, must decrease in the final year of a five-year cycle.
But as the Bank of England scales back its quantitative easing bond-buying program, which began in the wake of the 2008 financial crisis, the Treasury plans to take the £20bn to £50bn annual losses incurred by the Bank of England off the government's books. Sky News reported that they are considering it. and other outlets.
The move could allow the Chancellor to say the debt will fall even more rapidly over the next five years, increasing spending by at least £16 billion.
But the Institute for Public Policy think tank argued in a paper last week that up to £57bn of additional investment could be allowed if the government adopted a 'public sector net worth' measure.
The report says the measure is “more economically rational than the previous government's rules, which did not take into account the full set of public assets such as equity and liabilities such as pension obligations.”
However, it advised that some of this cash “should be retained as a buffer against uncertain economic forecasts.”
Another think tank, the Institute for Fiscal Studies, also warns against borrowing so much money.
Mr Reeves is also said to be considering moving new government projects, GB Energy and the Wealth Fund, off the Treasury's books, which could open up an additional £15bn of borrowing. be.
Although governments may change their fiscal rules, international bond markets have the final say on a government's credibility by raising or lowering the price they are willing to pay to hold the national debt.
Former chancellor Liz Truss's 2022 mini-budget allocated £45bn of unfunded tax cuts, but a bond market backlash prompted her to resign weeks later.
