Great Britain
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Liz Truss and Rishi Sunak warned that taxes 'could leave a huge hole in public purses'

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Tax cuts risk exacerbating the UK's economic crisis by creating an even bigger hole in people's wallets. There is, Liz Truss and Lisi Snak warn today.

Tory leadership candidates have all promised tax cuts in their bids to become prime minister, but have publicly vowed to dramatically cut government spending.

But Carl Emerson, deputy director of the Institute for Fiscal Affairs, said double-digit inflation would force whoever becomes prime minister to spend more cash on benefits, pensions and debt service. said it needed to accumulate more.

Permanent tax cuts are likely to push the coffers into further deficits without significant pressure on spending.

Emerson said of the situation: There is a presumed lack of concrete measures to reduce public spending and a desire to manage the country's finances responsibly.'

This pessimistic report } It warns that increased tax revenues from inflation will be eaten up by a left-right punch from slower economic growth and higher government spending.

And while borrowing in the short term to support needy families is harmless, in the long run you will accumulate enormous debt.

Team Rishi argued that the report was "driving coaches and horses through Liz's economic plan," calling for significant tax cuts and overcoming Mr. Sunak's plans for targeted cash assistance.

Mr. Truss' campaign claimed that her "economic plans were consistent with a prudent financial situation."

At the latest husting in Belfast yesterday, the rivals once again exchanged direct blows over plans to make life easier.