Chancellor attacked by Speaker for failing to tell MPs of key budget announcement

The Commons Speaker has hit out at Rachel Reeves for not informing MPs of a key announcement ahead of the budget.

Sir Lindsay Hoyle said it was "totally unacceptable" that the chancellor confirmed her intention to change the government's fiscal rules to the media and not to parliament first - as is laid down in the ministerial code.

Last week, Ms Reeves said she would rewrite the fiscal rules to allow her to increase borrowing for public investment by around £50bn.

Politics live: Furious Speaker gives chancellor a telling off

A fiscal rule is a limit or restriction governments put in place to constrain how much they can borrow to fund public spending.

Speaking to Sky News in Washington DC, the chancellor said that the self-imposed rule - under which borrowing must be falling by the fifth year of economic forecasts - will be redefined from the current measure of public sector net debt.

Ms Reeves would not be drawn on what measure will replace the current rule but there is speculation that she will favour using public sector debt net of financial liabilities (PSNFL).

Under this definition, investments such as the government's student loans book are defined as assets rather than liabilities, which on current measures would allow a further £53bn of borrowing.

The ministerial code sets out the standards of conduct expected of ministers and how they perform their duties.

It states that when parliament is sitting, the most important announcements should be made in parliament.

Prior to Labour forming the government, the Speaker had also rebuked Conservative ministers for leaking budget details to the media before the main event - at one point even suggesting they should resign over the matter.

Addressing MPs in the Commons on Monday, Sir Lindsay said ministers "should expect to face proper, sustained scrutiny when these announcements are made".

"I am very, very disappointed," he said.

"The elected members of this House are not the American news channels."

Looking ahead to the budget on Wednesday, Sir Lindsay said: "Honourable members may be wondering how they'll get a seat on Wednesday - to be quite honest, the way it's going you won't need to, we'll have all have heard it.

"It's not acceptable, I don't want it to continue and I want to treat this House with the respect it deserves."

He added: "It's totally unacceptable to go around the world telling everybody rather than these members. They were elected by the constituents of this country and they deserve to be treated better.

"Isn't it funny that when it was the previous party, it was the opposite side that was complaining to me. Get your acts together, all sides, treat members with respect."

Earlier on Monday, the prime minister confirmed there will be tax rises in the budget to prevent what he called a "devastating return to austerity" and to rebuild public services.

In a speech in Birmingham, Sir Keir Starmer also announced the £2 bus fare cap will rise to £3, while £240m will be injected into efforts to get people back to work.

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It follows weeks of speculation on how the government plans to grow the economy and close a £40bn blackhole in the nation's finances when it delivers its first fiscal statement on Wednesday.

Asked to respond to the Speaker's warning in parliament, the prime minister's official spokesperson told reporters it was a "matter for parliament".

"Britain is on a new path and it is on for growth," they added.

"On bus fares, we know it is an important issue - that's why the PM has announced the three pound cap."