Tories will be rubbing their hands this morning as Rachel Reeves doubles down on Labour’s commitment to “borrowing to invest”, for example £28 billion in “green investment”, and funding everything else with tax. Borrowing is taxation deferred…

Reeves reminds Guido of John McDonnell’s 2017 claim that new borrowing would “pay for itself” and that the “enormous social and financial returns” would make it all worthwhile. When Labour was roundly bashed for its trigger-happy commitments then, the cost of borrowing was at an all-time low. Interest rates are now at 5.25% and Reeves can only promise to delay her flagship borrowing project for so long – the gilt market is already showing nerves at Labour plans. Big government, big spending is in Labour’s DNA. “Iron fiscal rules” can be transient once a party gets into power…