The tax cuts promised by both Liz Truss and Rishi Sunak in 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 Institute for Fiscal Studies.
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.
