The Economist explains

Can tax cuts boost Britain’s lacklustre economy?

Conservative leadership hopefuls are one-upping each other with promises to slash taxes

(FILES) In this file photo taken on October 27, 2021 Britain's Chancellor of the Exchequer Rishi Sunak poses with the Budget Box as he leaves 11 Downing Street in central London. - Britain's Boris Johnson has announced his resignation as Conservative leader, paving the way for an internal party contest to replace him and become prime minister. While several possible successors have been suggested, there is no clear favourite. (Photo by Daniel LEAL / AFP) (Photo by DANIEL LEAL/AFP via Getty Images)

Editor’s note: This article has been updated since publication.

THE CANDIDATES TO replace Boris Johnson as leader of the Conservative Party, and Britain’s prime minister, are scrambling to one-up each other with promises of tax cuts. The exception is Rishi Sunak, the ex-chancellor. He says that now is not the time for “comforting fairytales” and that cutting tax must wait. But many of his opponents have pledged deep tax cuts, which they say will put money into people’s pockets and restore economic dynamism to a country whose growth has lagged behind its peers for over a decade. Are they right?

This article appeared in the The Economist explains section of the print edition under the headline "Can tax cuts boost Britain’s lacklustre economy?"

More from The Economist explains

What are the rules governing protests on American campuses?

They vary, and are hard to enforce

Who is jamming airliners’ GPS in the Baltic?

Russia seems to be the culprit, but it may be inadvertent


What are the obligations of Israel and Hamas to protect civilians?

International Humanitarian Law creates obligations—but contains numerous caveats