borrowing

Higher interest rates have also added to borrowing costs and raised the overall price of installing wind farms significantly in the last few years.

Takaichi, who has held senior government roles including minister for economic security and internal affairs, is known for her support of higher government spending and lower borrowing costs.

But he ruled out a wealth tax in November's budget and mounted a strong defence of Chancellor Rachel Reeves' fiscal rules, saying they were "non-negotiable," with the "global cost of borrowing as it now is".

Rejecting calls for a wealth tax and increases in borrowing to fund government spending, Sir Keir said he would not "cast off the constraints and indulge in ideological fantasy".

Economists have said taxes will have to go up in the autumn Budget if the chancellor is to meet her self-imposed rules on borrowing to fund public services.