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The Guardian - UK
The Guardian - UK
Politics
Richard Partington and Peter Walker

Tax cut pledges by Tory leadership hopefuls ‘risk stoking inflation and inequality’

Basket of groceries in supermarket
George Dibb of the IPPR thinktank says the tax plans do not match the needs of families struggling with the soaring cost of living. Photograph: Matthew Horwood/Getty Images

The scale of tax cuts promised by Conservative leadership hopefuls would blow a hole in the public finances and could lead to rampant inflation, Tory opponents and economists have warned.

Nadhim Zahawi, who took over as chancellor last week, used a leadership speech on Monday to announce tax policies that would cost an estimated £50bn a year, almost as much as the combined budgets of the Ministry of Defence and Foreign Office.

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