Jeremy Hunt rules out tax cuts, despite borrowing being lower than expected

Chancellor remains cautious

Jeremy Hunt, the Chancellor, has insisted that tax cuts are still "virtually impossible" at this time, despite borrowing being below official forecasts. This comes after borrowing was reported to be £11.6 billion, which is lower than the expected £13 billion.

No giveaway in November

Hunt's comments have dampened expectations of a potential giveaway in this year's Autumn Statement, which will take place in November. The Government received a boost from a growing tax take and the knock-on effects of falling inflation, but the Chancellor remains cautious.

Long-term debt costs a concern

One of the main reasons cited by Hunt for ruling out tax cuts is the rising cost of long-term debt. He stated that the cost is higher now than it was at the Spring Budget, making life extremely difficult and tax cuts virtually impossible. Hunt emphasized the need to stick to the plan of reducing inflation and interest rates in order to bring down long-term debt costs.

Borrowing lower than forecasted

In a positive note, 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 year's Budget, which will be presented in March.