British financial markets have been under strain since last month when finance minister Kwasi Kwarteng announced 45 billion pounds ($50 billion) of tax cuts and unprecedented support on energy bills without saying how they would be paid for.
The Institute of Fiscal Studies think-tank has said the strategy will require 62 billion pounds of spending cuts or tax increases to stop the public debt growing – a daunting proposition after more than a decade of tight government spending.
“What we will make sure is that over the medium term the debt is falling, but we will do that not by cutting public spending but by making sure we spend public money well,” Truss told parliament.
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