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Sir Kerr Starmer has warned the representatives of the Labor Party that Britain’s financial rules will not be relaxed to avoid painful luxury discounts, despite the increasing pressure of the UK party parties to follow Germany to operate borrowing taps.

The Prime Minister agreed with the counselor Rachel Reeves Britain’s financial rules must be respected and that any relaxation in the self -imposed restriction will frighten the markets and force borrowing costs.

“The markets are still testing us,” said one of the senior government officials. “We are in a position where the decisions we make give up a great scrutiny.”

Germany’s decision to reduce borrowing rules to finance spending on defense and infrastructure projects on Reeves has increased to consider its bases again, which requires current spending balancing with tax receipts by 2029-30.

Annelies Dodds, who left as Minister of Development abroad last month discounts in aid budget, told Starmer in her resignation letter that “we expected to collectively discuss our financial rules and tax approach, as other countries do.”

“The rules” should relax. ” He said that the rules of Reeves required them to reduce the social welfare law more than the conservatives planned. Farahs of up to 6 billion pounds per year were launched.

Discussing the financial rules within the party on a large scale, says discussing the financial rules within the party.

One of them said: “Cutting luxury is difficult for the work of the work, and it is the most difficult thing we have asked to swallow.

Another labor deputy said: “When the situation changes, you will not only be able to adhere to your previous plans, you need to consider things like higher taxes or your financial rules.”

Richard Burgon, a former position in the Labor Party, used a question in the Prime Minister’s questions to say that “wealth tax” should replace the planned social care discounts.

It is common in the British policy of the Prime Minister today alongside deputies who want more spending, leading to tensions with the advisor. Regarding the issue of financial discipline, Starmer and Reeves seem to be aligned.

One of Starmer’s ally said that if Britain follows Germany in relaxing its financial bases, the subsequent rise in borrowing costs in the UK imposed by the markets is punished.

One of them said: “Germany has a debt rate to 62 percent, while our number is about 95 percent. There are clear differences there.”

Reeves said its financial bases are “negotiable” and ordered a reduction in aid budget to finance a defensive spending from 2.3 percent of GDP to 2.5 percent in 2027.

The government in Germany has proposed a 500 billion euros fund for infrastructure and changes in borrowing bases to allow a wave of spending on re -arms. This announcement has sparked the largest day in borrowing costs since 1997 last week, as investors have prepared themselves to increase debt issuance.

“An extraordinary” procedure for “extraordinary time”.

Economists believe that the Reeves Public Financial Resources Plan has been detonated through a range of high borrowing costs and slow growth, and some expect to reduce spending or taxis by at least 10 billion pounds in its spring statement on March 26.

In October, it allowed herself 9.9 billion pounds from the head room against its financial rule, but this is believed to have been eliminated. It is planned to reduce social welfare cuts and other spending discounts to provide the advisor with Boada against more bad news.

Nicholas Trenddei, a large portfolio manager in the arm of the Investment Department in Aksa, warned that Reeves “cannot continue to manage the economy with only 10 billion pounds of the foreground,” adding: “He not only works and it will face the same problem over and over again.”

Investors said that any step to alleviate the recently changed financial rules as October will be received by the market. Fears about the rise in borrowing in the UK with the sale of global bonds to raise borrowing costs in the United Kingdom for a period of 10 to 16 years at 4.93 percent in January.

At less than 4.7 percent on Thursday, they are still almost a percentage above as it was in mid -September, and at levels similar to those that were reached in the market crisis after the “mini” budget for 2022.

“The UK Treasury has been arrested in a scope,” said James Smith, an economist in the UK in Inge. “The costs of higher debt interest means painful spending discounts in the Spring statement on March 26, it looks inevitable now. The additional tax increase is likely to be likely later in the year.”