UK’s mounting debts unsustainable if sweeping tax cuts go ahead, warns IFS

Kwasi Kwarteng is expected to reverse a hike in national insurance payments and cut corporation tax at a cost of £30bn to the Treasury. Photograph: Anadolu Agency/Getty Images

Britain’s mounting debts will be unsustainable if the government presses ahead with sweeping tax cuts in a mini-budget on Friday, according to the Institute for Fiscal Studies thinktank.

Fuelling concerns that the UK’s precarious financial position will spark a run on the pound, the chancellor, Kwasi Kwarteng, is expected to reverse an increase in national insurance payments and cut corporation tax at a cost to the Treasury of £30bn.