Rishi Sunak must avoid ‘doom loop’ of austerity cuts, says CBI boss

New PM must not repeat mistakes of 2010s, says Tony Danker

Rishi Sunak must avoid a “doom loop” of tax rises and austerity cuts to the public sector, said the head of the Confederation of British Industry (CBI).

The incoming prime minister is expected to keep Jeremy Hunt as chancellor and stick to the 31 October date for the government’s debt reduction plan.

Tony Danker, the CBI’s director-general, warned Mr Sunak not to entirely junk Liz Truss’s ideas about economic growth – arguing that a relentless focus on cuts would see a negative spiral.