Rishi Sunak warns of UK economy confidence drop

Doubts over Truss' plan to cut taxes

clock • 1 min read

Conservative leadership underdog Rishi Sunak has warned that markets could lose confidence in the UK economy, as frontrunner Liz Truss’ spending commitments risk exacerbating inflation and lead the country into further debt.

In an interview with the Financial Times, Sunak cast doubt on Truss' pledge to cut taxes and provide support to families during the cost-of-living crisis. "We have more inflation-linked debt by a margin than any other G7 economy — basically more than double. Because of the structure of QE [quantitative easing], we are also particularly much more sensitive to an upward rate cycle than we have been," he said.  These comments come as Conservative leadership frontrunner Liz Truss pledged an emergency budget that would reverse rises in national insurance and corporation tax. Sunak went ...

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