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Sunak Eyes as Much as £50 Billion of UK Spending Cuts, Tax Rises

  • Premier seeks buffer over and above £35 billion budget hole
  • Sunak, Chancellor Hunt, held meeting Thursday to discuss plans
Rishi Sunak

Rishi Sunak

Photographer: Chris J. Ratcliffe/Bloomberg

UK Prime Minister Rishi Sunak is seeking to build a buffer in the public finances as he draws up an economic plan to plug Britain’s budget shortfall, which could entail tax rises and spending cuts totaling as much as £50 billion ($58 billion).

Sunak and Chancellor of the Exchequer Jeremy Hunt want the extra headroom over and above the UK’s £35 billion fiscal hole so that the package has credibility with the markets, an official familiar with the matter said. Another said that could entail spending cuts and tax rises closer to £50 billion, a figure widely reported in the British media on Friday. Both spoke on condition of anonymity because the plans are unpublished.