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Tax Cuts and Public Sector Pay, Big Calls for New UK Chancellor

July 6, 2022, 12:26 PM

Britain’s new chancellor of the exchequer, Nadhim Zahawi, is facing two big calls as he tries to juggle the conflicting pressures of rising inflation and the cost-of-living crisis.

He has already said he is “determined to do more” on cutting taxes, in an attempt to ease the living standards squeeze on households, boost economic growth and placate fellow Conservatives who fear the party is losing its low-tax reputation. The Bank of England is forecasting two years of stagnation.

Zahawi may flesh out his thoughts next week in a scheduled joint statement on the economy with the prime minister. ...