LONDON (Reuters) – Boris Johnson and Jeremy Hunt are competing to bolster their bids to become Britain’s next prime minister by proposing higher public spending and tax cuts which would represent a sudden relaxation of the country’s tight grip on the public finances.
Johnson, the favourite and a former London mayor, has vowed to spend an estimated 31 billion pounds on tax cuts, public sector pay rises and better education, while Foreign Secretary Hunt has made pledges costing 40 billion pounds.
Hunt - Corporation - Tax - Defence
Hunt plans to slash corporation tax and spend on defence.
Both men have said they will tap into the 27 billion pounds of “fiscal headroom” that has built up in the public finances, referring to the difference between the government’s target for the budget deficit and its projected size, which is lower.
Finance - Minister - Philip - Hammond - Candidates
Finance minister Philip Hammond has warned the two candidates that their plans would cost more than the headroom in his budget.
Furthermore, Johnson and Hunt say they would take...
Wake Up To Breaking News!