UK's tax policy slammed by analysts

LONDON — The United Kingdom's new government has outlined plans to cut taxes and boost spending to bolster the faltering economy, but the high-risk moves sparked concerns that increased public borrowing will worsen a cost of living crisis and sent the British pound on its biggest one-day drop in the past two and a half years.

Treasury chief Kwasi Kwarteng announced sweeping tax cuts that he said would boost economic growth and generate increased revenue without introducing corresponding spending reductions. He also said previously announced plans to cap soaring energy bills for homes and businesses would be financed through borrowing.

Kwarteng offered few details on the costs of the program or its impact on the government's own targets for reducing the deficit and borrowing. The British currency fell more than 3 percent to as low as $1.0899 in afternoon trading in London, from $1.1255 on Thursday.