The chancellor Sajid Javid announces the Conservative Party's plans for the economy

Sajid Javid has revealed plans to invest £100 billion in hospitals, schools and infrastructure as part of a “decade of renewal” for the nation.

The chancellor announced a new “fiscal rule” that will enable him to invest 3 per cent of national income on infrastructure projects.

It came as John McDonnell, the shadow chancellor, abandoned Labour’s previous fiscal rules by announcing that the party will exclude “borrowing for investment” from its targets. The move means Labour can commit to spending more than twice as much as the Tories on infrastructure.

The development came as the Office for Budget Responsibility, the fiscal watchdog, was forced to abandon the publication of official borrowing forecasts after Sir Mark Sedwill, the cabinet secretary, intervened.

The figures were expected to