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UK Tory Leadership Rivals Attacked Over Unfunded Tax Cuts

  • IFS says Truss or Sunak face extra costs because of inflation
  • Neither has pledged specific spending cuts to finance giveaway
The Palace of Westminster, the meeting place of the Houses of Parliament and Westminster Bridge in London.

The Palace of Westminster, the meeting place of the Houses of Parliament and Westminster Bridge in London.

Photographer: Luke MacGregor/Bloomberg

The next UK prime minister faces a worsening fiscal outlook, raising questions about the viability of big tax cuts being promised by the two candidates vying for the job, a leading research group warned. 

In a report published Thursday, the Institute for Fiscal Studies said government borrowing next year is set to be £23 billion ($28 billion) higher than forecast due to the impact of soaring inflation on debt and welfare costs, even before any extra money to help struggling consumers and departments has been announced.