U.Ok.’s Sweeping Tax Cuts Send Pound Tumbling, Bond Yields Higher

LONDON—The British authorities Friday unveiled the nation’s greatest tax cuts for the reason that early Nineteen Seventies, a daring transfer geared toward kick-starting development at a time of world financial turmoil however one which spooked buyers and sparked the largest one-day selloff of the pound for the reason that pandemic roiled markets in March 2020.

The package deal of tax cuts, paired with subsidies for households and companies to deal with a surge in vitality costs, was geared toward boosting the flagging U.Ok. economic system amid stubbornly excessive international inflation and rising financial gloom in Europe. As an alternative, it might have solely added to international worries by inflicting a market backlash.