Hunt Dampens Prospects of Tax Cuts

Jeremy Hunt, the Chancellor, has insisted that cutting taxes at this time is "virtually impossible" despite borrowing being below official forecasts. Even though borrowing was £11.6 billion, lower than the expected £13 billion, Hunt dampened prospects of a giveaway in November's Autumn Statement.

Growing Tax Take and Falling Inflation Boost Government

The government has been boosted by a growing tax take and the knock-on effects of falling inflation. However, Hunt stated that the cost of long-term debt is higher now than it was at the Spring Budget, making tax cuts virtually impossible.

Hunt Faces Difficult Decisions

Hunt acknowledged that the high long-term debt costs will lead to difficult decisions. He emphasized the importance of sticking to the plan to get inflation down and interest rates down in order to decrease long-term debt costs.

Borrowing Below Official Forecasts

Borrowing for the financial year has reached £69.6 billion, which is below the £81 billion figure given by official forecasters. However, Ashley Webb of Capital Economics predicts "wriggle room" for tax cuts and spending in next March's Budget.