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Gordon Brown prepares to ditch fiscal rules on government debt

Updated on 18 July 2008

By Faisal Islam

As public sector borrowing leaps to £9.2bn is Gordon Brown about to ditch the famous economic rules he set his credibility upon?

Break the rules, change the rules or put up taxes?

That's the stark choice facing the government as the economic downturn pushed public sector borrowing to more than £9bn last month, far higher than the City had expected.

So those much vaunted fiscal rules might be the cornerstone of Gordon Brown's reputation for prudence, but today the government admitted they are under review.

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Faisal Islam gets the inside story on the national debt.

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A Golden Goose calculus: Tax raised by City in 9 years = £250bn. Estimated cost of bailout = £50bn plus. Post-crisis inc in nat debt= £844bn

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