The chancellor is looking at larger public spending cuts as a way to deliver tax cuts, the BBC understands.
Jeremy Hunt is considering cuts because he’s seen economic forecasts ahead of the Spring Budget which it’s understood paint a bleaker picture of public finances than previously thought.
Mr Hunt has given strong hints he wants to cut taxes, which are on course to rise to the highest level for decades.
Mr Hunt has given strong hints he wants to cut taxes, which are on course to rise to the highest level for decades.
The exploration by the chancellor to reduce public spending to fund tax cuts comes after already pencilled-in spending squeezes were described as a “work of fiction” by the government’s official economic forecaster, the Office for Budget Responsibility (OBR).
Asked by the BBC whether he was planning to squeeze public services to fund pre-election tax giveaways, Mr Hunt said: “The way you get resources to fund our public services for the future is to have an economy which is growing healthily – and that is what our plan is designed to deliver, but the first thing you have to do is to bring down inflation.”
On Thursday, official figures showed the UK economy slipped into recession in the final months of 2023, casting doubt over Prime Minister Rishi Sunak’s pledge of economic growth.
But Mr Hunt argued that when the prime minister “made his commitment he was very clear, tackling inflation had to come first”.
“The big picture is that actually since then the economy has been more resilient, unemployment has stayed low, real wages have been rising now for six months. And if we stick to our guns now, we can see light at the end of the tunnel,” the chancellor said.
The chancellor is looking at larger public spending cuts as a way to deliver tax cuts, the BBC understands.
Mr Hunt has given strong hints he wants to cut taxes, which are on course to rise to the highest level for decades.
Jeremy Hunt is considering cuts because he’s seen economic forecasts ahead of the Spring Budget which it’s understood paint a bleaker picture of public finances than previously thought.
The exploration by the chancellor to reduce public spending to fund tax cuts comes after already pencilled-in spending squeezes were described as a “work of fiction” by the government’s official economic forecaster, the Office for Budget Responsibility (OBR).
Mr Hunt has given strong hints he wants to cut taxes, which are on course to rise to the highest level for decades.
Mr Hunt has given strong hints he wants to cut taxes, which are on course to rise to the highest level for decades.
The exploration by the chancellor to reduce public spending to fund tax cuts comes after already pencilled-in spending squeezes were described as a “work of fiction” by the government’s official economic forecaster, the Office for Budget Responsibility (OBR).
Asked by the BBC whether he was planning to squeeze public services to fund pre-election tax giveaways, Mr Hunt said: “The way you get resources to fund our public services for the future is to have an economy which is growing healthily – and that is what our plan is designed to deliver, but the first thing you have to do is to bring down inflation.”
On Thursday, official figures showed the UK economy slipped into recession in the final months of 2023, casting doubt over Prime Minister Rishi Sunak’s pledge of economic growth.
But Mr Hunt argued that when the prime minister “made his commitment he was very clear, tackling inflation had to come first”.
“The big picture is that actually since then the economy has been more resilient, unemployment has stayed low, real wages have been rising now for six months. And if we stick to our guns now, we can see light at the end of the tunnel,” the chancellor said.
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