UK Budget Watchdog Challenges Tory Ambitions for Tax Cuts
- Fiscal stimulus will boost inflation and public debt, OBR says
- Conclusions jars with vow from Conservatives to cut taxes
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The UK government’s budget watchdog has warned Conservative Party leadership hopefuls that cutting taxes would drive up inflation and put the public finances under pressure.
The looming battle to pick a replacement for Prime Minister Boris Johnson as head of the ruling party is likely to feature promises of tax cuts, which are the stated ambition of newly appointed Chancellor of the Exchequer Nadhim Zahawi. Zahawi is also a contender for the top job.