Desperately hard choices lie ahead for Sunak and Hunt

The writer is director of the Institute for Fiscal Studies

After the political and market upheaval of the past six weeks, Rishi Sunak and Jeremy Hunt, the new prime minister and chancellor, face two separate but intimately related economic challenges. The first is rampant inflation and the consequent “cost of living crisis”. The second is a slowing economy and consequent deterioration in the fiscal outlook.

The latter has taken…