The Tory leadership candidates have been confronted by a stark report from economists warning of the danger tax cuts could pose to the public purse.
Frontrunner Liz Truss and rival Rishi Sunak, who have clashed over their competing visions for the UK economy, were faced with a sobering analysis by the respected Institute for Fiscal Studies (IFS). It warned “permanent tax cuts” could worsen pressures on public spending.
The warning comes amid a deteriorating economic outlook for the UK, with inflation rising to 10.1 per cent in July. Mr Sunak, the former chancellor, is believed to be trailing Ms Truss, the Foreign Secretary in support among the party members set to choose the next Tory leader.
