Historic tax cuts and borrowing define Britain’s new economic agenda

Published by
Reuters UK

By David Milliken and Andy Bruce LONDON (Reuters) -Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing on Friday in an economic agenda that floored financial markets, with British government bonds in freefall. Kwarteng scrapped the country’s top rate of income tax and for the first time put a price tag on the spending plans of Prime Minister Liz Truss, who wants to double Britain’s rate of economic growth. Investors unloaded short-dated British government bonds as fast as they could, with 2-year gilts on track for their biggest one-day fall…

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