Rolling coverage of the latest economic and financial news, as markets anticipate another rise in UK interest ratest at noon today
Concerns that chancellor Kwasi Kwargeng could put the UK public finances on an “unsustainable path” in his mini-Budget on Friday won’t help the pound either.
Last night, the respected Institute for Fiscal Studies warned that the government’s planned sweeping tax cuts, at a time of weak economic growth, could leave a £60bn per year hole in the public finances.
“Recent rapid increases in the cost of debt interest highlight the risks of substantially and permanently increasing borrowing and putting debt on an ever-increasing path.”
“There is no miracle cure, and setting plans underpinned by the idea that headline tax cuts will deliver a sustained boost to growth is a gamble, at best.”
