By DANICA KIRKA, JILL LAWLESS and SYLVIA HUI
LONDON (AP) — The British pound has went on its biggest one-day drop in 2 1/2 years after the U.K.’s new government outlined plans to cut taxes and boost spending. It’s sparked concerns that increased public borrowing will worsen the nation’s cost-of-living crisis. The British currency plunged over 3% on Friday. Treasury chief Kwasi Kwarteng announced sweeping tax cuts that he said would boost economic growth and generate increased revenue, without introducing corresponding spending reductions. He also said previously announced plans to cap soaring energy bills for homes and businesses would be financed through borrowing. Critics attacked the plan for favoring business interests over working people and failing to provide any figures on its impact on government fiscal targets.