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Johnson’s Successor Has £60 Billion for UK Tax Cuts, CEBR Says

  • Bigger nominal GDP, frozen tax thresholds boost income: CEBR
  • CEBR warns cuts would lift prices while job shortages persist

Britain’s next leader can afford £60 billion ($72 billion) of tax cuts as a combination of higher than expected inflation and frozen income tax thresholds hands the Treasury a windfall at the end of the parliament, according a leading economics consultancy.

The Centre for Economics and Business Research estimates that the nominal cash size of the economy will be 5.7% larger in 2024/25 than officially assumed because inflation is running hotter than forecasted.