British financial markets have been under strain since Sept. 23 when finance minister Kwasi Kwarteng announced 45 billion pounds ($50 billion) of tax cuts, without saying how they would be paid for. The Institute of Fiscal Studies think-tank has said the strategy will require 62 billion pounds of spending cuts or tax rises to stop the public debt growing - a daunting proposition after more than a decade of tight government spending. Register now for FREE unlimited access to Reuters.com RegisterTruss and Kwarteng say their tax cuts will boost economic growth and restore the public finances over the medium term. Asked if she was sticking to a pledge not to cut spending made during the Conservative leadership contest, she said: "Absolutely, absolutely." Her spokesman later said that although public spending overall would rise, "there will be deeply difficult decisions to be taken given some of the global challenges we're facing".

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