JEREMY Hunt’s mission to slash taxes for hard-up households was given a major boost today as borrowing rose less than expected.
The Chancellor was handed an extra £5 billion for swinging the axe at levies as he plans his Spring Budget taking place at the start of March.
ReutersJeremy Hunt is expected to announce a series of tax cuts at the Spring Budget in March and was given a boost today as public sector borrowing rose by a lower rate than expected[/caption]
The welcome news came as public sector borrowing went up by only £7.8 billion in December – less than the £14 billion predicted by official forecasters.
It could pave the way for big income tax or further national insurance reductions as part of a pre-election giveaways.
Mr Hunt is under huge pressure to give more relief to families and workers battling with the cost of living.
In November he cut the rate of national insurance from 12% to 10%.
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But backbench MPs say more is needed if the Tories want to turn the polls around and defeat Labour at this year’s general election.
Responding to the latest borrowing figures, John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Taxpayers will be encouraged to hear that there are billions in the bank.
“But it will mean little to ordinary households if this headroom isn’t used to ease the record high tax burden that has been imposed on taxpayers.
“The Chancellor needs to seize this opportunity and push for an income tax cut, putting more money back where it belongs – in the pockets of hardworking Brits.”
Last week Mr Hunt hinted that more tax cuts could be approved in just weeks.
The Chancellor insisted he wants to reduce the 70-year high tax burden at the Budget at the start of March.
Mr Hunt told Sky News: “I believe fundamentally that low-tax economies are more dynamic and more competitive, and in the end, generate more wealth for public services like the NHS.
“My priority in the budget will be growth, because if I can grow the economy, that will mean that then we have more money for the NHS.
“We can relieve the pressure on families, we can invest in our brilliant armed forces, all the things that really matter.”
The Chancellor was echoed by Rishi Sunak, who confirmed this morning that he would “like to be able to do more” cutting of taxes “when it is responsible to do so”.
Commenting on the borrowing figures, Shadow Chief Secretary to the Treasury, Darren Jones, said: “Rishi Sunak failed to grow the economy and now we know he failed to get debt falling.
“National debt his now at the highest level since the 1960s – and has more than doubled since 2010.
“Britain cannot afford another five years of this low growth, high tax Conservative government that is leaving working people worse off. It’s time for change.”