UK slashes personal, corporate taxes in bid to spur growth

By DANICA KIRKA, JILL LAWLESS and SYLVIA HUI
Associated Press

LONDON (AP) — Britain’s new government announced a sweeping plan of tax cuts it said would be funded by borrowing and revenues generated by anticipated growth, as part of contentious moves to combat the cost-of-living crisis and bolster a faltering economy. But Treasury chief Kwasi Kwarteng offered few details on the cost of the program and its impact on the government’s own targets for reducing deficits and borrowing. The government’s two-pronged approach offers short-term help for homes and businesses struggling with soaring energy costs while betting that lower taxes and reduced red tape will spur economic growth and increase tax revenues in coming years. Kwarteng says “we need a new approach for a new era, focused on growth.”