The UK's twin tightening gamble

Chancellor Rishi Sunak says the UK economy is recovering faster than its major competitors and public finances are stabilising. Economic growth for this year has been revised up to 6.5% from 4% in March. But taxes are going up, too, with the tax burden set to rise to the highest level in 70 years. At the same time, markets expect the Bank of England to embark on a series of interest rate hikes, starting next week. With signs that the economy may be starting to lose momentum though, is it too much too soon? ING's Developed Markets Economist James Smith takes a look.