By David Milliken WASHINGTON (Reuters) -British finance minister Rachel Reeves said on Thursday she would change the measure of public debt that the government targets in next week's budget in order to allow more borrowing for investment.

UK Chancellor of the Exchequer Rachel Reeves confirmed that she would make tweaks to her fiscal rules to allow more borrowing for investment, as the new Labour administration seeks to boost economic growth.

Rachel Reeves will reportedly unveil a major change to Labour’s fiscal rules at the budget on 30 October by borrowing billions for infrastructure investment. Following weeks of speculation, the chancellor will reveal her plans to change Britain’s debt rules at the International Monetary Fund’s (IMF) annual meeting in Washington on 24 October.

Britain's finance minister Rachel Reeves said she would change the fiscal rules in the budget, and the Financial Times said she would be seeking to fund around 20 billion pounds a year of extra investment with increased borrowing.

On Thursday, UK Finance Minister Rachel Reeves admitted her intentions to change Britain's fiscal rules in the October budget. She plans to free billions of pounds for investments.

The Chancellor will be looking to raise up to £40 billion from tax hikes and spending cuts in order to avoid a return to austerity.

Yields on British government bonds climbed on Thursday after a newspaper said finance minister Rachel Reeves was set to give herself a lot more room for borrowing in next week's budget, which could slow the Bank of England's interest rate cuts.