Sajid Javid ripped up conventional Tory spending rules as he pledged to invest £20bn on schools, hospitals and infrastructure.

Speaking in Manchester today, the Chancellor of the Exchequer said new fiscal rules would allow the Conservative’s to ‘borrow responsibly’ while still cutting taxes.

He and Labour rival John McDonnell have both headed up north with their spending proposals today.

Javid says historically the country has invested 1.8% of GDP per year for infrastructure but raising that by 1%, which would be affordable, would give you an extra £20bn a year.

‘Investment in long-term projects like road and rail will not exceed 3% of GDP’ he said.

‘Now compared to the long-term average of 1.8% that represents a huge step change in what we currently invest.

‘It means billions of pounds more to spend and the infrastructure revolution that this country needs.’

Mr Javid said a 3% public investment limit would give the economy a boost while allowing debt to fall.

He will keep a balanced budget by not spending more than what being is brought in.

If debt interest starts to rise significantly, the borrowing limit will be reviewed.

Borrowing will be kept to under 6% of GDP.

Mr Javid said the new rules were for a new  ‘economic era.’

He said if his party won the December 12 election, it would ‘take the government forward from a decade of recovery to a decade of renewal’.

Asked if his spending proposals meant the party couldn’t afford tax cuts, he replied there would still ‘be scope’ for this.

The Tories have repeatedly mocked Labour for their spending proposals, criticising the party for ‘borrowing irresponsibly’.

The chancellor said the difference between the two parties’ approaches is ‘the difference between night and day’.Under the Tory plan, debt as a proportion of GDP would come down over the course of the parliament, he claimed

He said there would be a ‘tax bombshell’ under Labour, who he accused of ‘conjuring up’ a £150bn fund out of nowhere.

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