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UK Heading for Recession on BOE View Even With Truss Tax Cuts

  • Bloomberg Economics says giveaways will only cushion the blow
  • Tory leadership favorite has pledged £39 billion of tax cuts
People pass a closed-down pound shop in Chatham, UK.

People pass a closed-down pound shop in Chatham, UK.

Photographer: Carl Court/Getty Images

The UK economy is still heading for a recession on Bank of England projections even if Liz Truss becomes prime minister and pushes through her aggressive tax-cutting agenda, according to Bloomberg Economics.

The £39 billion ($47 billion) of tax giveaways proposed by the favorite to succeed Boris Johnson would reduce the depth of the slump expected by the central bank but still leave the economy smaller than it is now.