UK chancellor faces tax cuts and public sector pay issues

The Bank of England (BoE) is forecasting two years of stagnation.

LONDON: Britain’s new chancellor of the exchequer, Nadhim Zahawi, is facing two big calls as he tries to juggle the conflicting pressures of rising inflation and the cost-of-living crisis.

He has already said he is “determined to do more” on cutting taxes, in an attempt to ease the living standards squeeze on households, boost economic growth and placate fellow Conservatives who fear the party is losing its low-tax reputation.