标签档案: TrussRishi

Tax cuts pledged by Liz Truss and Rishi Sunak are fanciful, 经济学家警告

Tax cuts pledged by Liz Truss and Rishi Sunak are fanciful, 经济学家警告
Institute for Fiscal Studies criticises Tory leadership contenders for failing to be upfront about economic crisis

The tax cuts promised by both 丽兹桁架里希·苏纳克their battle for No 10 are unrealistic without big spending cuts as inflation soars, economists are warning.

Both contenders for the Tory leadership are under fire for failing to be upfront with voters about the economic crisis ahead, in a damning report by the 财政研究所.

It warns that higher than expected inflation will force the Treasury to spend an extra £23bn on benefits and debt interest next year – even before any extra help to curb energy bills and prop up public services.

And that suggests rules on borrowing and debt will be broken unless “matching spending cuts can be delivered” to offset the tax cuts promised by the leadership rivals.

“现实情况是,英国在过去一年变得更穷了. 这使得税收和支出决策变得更加困难,” said Carl Emmerson, the IFS’s deputy director.

“由于缺乏任何削减公共支出的具体措施以及负责任地管理国家财政的假定愿望,很难兑现特拉斯女士和苏纳克先生在中期减税的承诺。”

The leadership race has seen Mr Sunak, the former chancellor, attack the foreign secretary’s “fantasy” economics in promising a £30bn-plus package of personal and business tax cuts.

但, despite his stance as the “sound money” candidate, he is also pledging tax cuts in the near future, having vowed to cut 1p off the 20p basic income tax rate before the likely 2024 general election – and slash it to 16p by 2030.

在其报告中, the IFS echoes a recent warning by the Treasury watchdog, 这 预算责任办公室, that “the public finances are already on an unsustainable long-term path”.

It concludes: “Large, 没有资金的, 永久性减税只会使这个问题变得更糟。”

The stark conclusions come after Ms Truss, the strong favourite to be the next prime minister, doubled down on her tax-cutting plans at party hustings – even as inflation hit a 40-year high of 10.1 百分.

“I think we have got to the stage in our economy where taxes are too high and they are potentially choking off growth,” she told Tory members in Northern Ireland.

Mr Sunak did raise the spectre of inflation, arguing that putting unfunded tax cuts “on the nation’s credit card” would “make inflation worse and last far longer”.

He also warned Tories that voters will never “forgive” the party if Ms Truss wins power and fails to rescue the poor from rocketing energy bills, without setting out detailed plans of his own.

Although inflation is expected to fall back in August, it is expected to soar to 13.3 per cent in October when the energy price cap is raised again – pushing the UK into recession, 这 英格兰银行 恐惧.

Labour is demanding a six-month freeze on energy bills, with shadow chancellor Rachel Reeves 说: “We must get a grip on rising inflation leaving families worried sick about making ends meet.”

The IFS said extra short-term borrowing “is not necessarily problematic”, but argued it was more likely to be “appropriate to fund targeted support”.

“There will be additional pressures, likely running into tens of billions, to continue to support households and to compensate public services for high inflation,” it pointed out.