Jeremy Hunt insists tax cuts still not possible — despite borrowing being below forecasts

JEREMY Hunt insists that cutting taxes now is “virtually impossible” — despite borrowing being below official forecasts.

The Chancellor dampened prospects of a giveaway in November’s Autumn Statement, even though borrowing was £11.6billion — below the expected £13billion.

The Government was boosted by a growing tax take and the knock-on effects of falling inflation.

But Mr Hunt said: “If you look at what we’re having to pay for our long-term debt, it’s higher now than it was at the Spring Budget.

“I wish it wasn’t, it makes life extremely difficult, it makes tax cuts virtually impossible.

“It means that I will have another set as frankly very difficult decisions.

“All I would say is if we do want those long-term debt costs to come down, then we need to really stick to this plan to get inflation down, get interest rates down.”

Borrowing for the financial year has reached £69.6 billion.

This is below the £81 billion figure given by official forecasters.

But Ashley Webb of Capital Economics predicted “wriggle room” for tax cuts and spending in next March’s Budget.