UK cuts taxes, lifts cap on banker bonuses

Britain’s new government on Friday announced a sweeping plan of tax cuts as part of contentious moves to combat the cost-of-living crisis and bolster a faltering economy. Treasury chief Kwasi Kwarteng said there were “too many barriers for enterprise” as he put lower taxes top of the government’s agenda.

But Kwarteng offered few details on the cost of the program and its impact on the government’s own targets for reducing deficits and borrowing. The government’s approach offers short-term help for homes and businesses struggling with soaring energy costs while betting that lower taxes and reduced red tape will spur economic growth and increase tax revenues in coming years.

Many economists have expressed concern that the government’s policies will lead to a sharp increase in borrowing, undermining confidence in the British economy.