LONDON — The UK Treasury is exploring ways to expand investment borrowing under existing fiscal rules, a move that could unlock billions of pounds for infrastructure, housing and business development ahead of the government's autumn Budget.

Officials are assessing whether public investment can be increased through institutions such as the British Business Bank, the National Wealth Fund and the proposed National Housing Bank. The aim is to support long-term economic growth while remaining within the government's fiscal framework.

Potential investment could be directed towards transport infrastructure, affordable housing, regional development and business finance, with ministers arguing that carefully targeted capital spending can improve productivity and strengthen the UK's long-term competitiveness.

Economists say the proposals reflect growing pressure to stimulate investment without undermining market confidence. While higher government borrowing remains a sensitive issue, supporters argue that productive investment in infrastructure and innovation can generate stronger economic returns over time.

No final decisions have been announced, and the Treasury has indicated that any policy changes will be presented through the formal Budget process later this year. Business leaders and investors are expected to watch closely for further details on how additional funding could support UK companies and regional economies.