Opinion
Sugar high of tax cuts will not fix UK economic woes
Loosening fiscal policy could stoke inflation and force the Bank of England to push interest rates higher.
The Lex ColumnThe contest to lead the Conservative Party can be likened to the TV cartoon series Wacky Races. Watch as a cast of colourful characters scheme to make their economic engines go faster. Candidates are vying to take the brakes off, with tax cut promises that run into tens of billions of pounds.
The desire to cut tax rates is understandable. The overall tax burden is heading towards its highest level since Clement Attlee was in power 70 years ago. Inflation is providing the Treasury with more fiscal headroom.
Financial Times
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