The Government borrowed £6.6bn more than had been forecast during the past financial year, new figures showin an Autumn Statement held in September, if the general election is called for October or November as is widely expected. Mr Hung is also said to be weighing up a cut to stamp duty.
Treasury sources said the ONS projections would not stop the Chancellor from meeting his fiscal rules, which require the national debt to be on a downwards trajectory over a five-year time frame. But Mr Hunt is understood to believe that the data show the need to be cautious with public finances.
“Hunt can plan for another year of unrealistically weak public spending to generate ‘headroom’ against his fiscal rules and thereby manufacture the funds to cut taxes.” He told the Bright Blue think-tank: “I can’t see a world where there is no state pension I can see a world where, I am afraid, you and your younger colleagues wait until a number beginning with seven. I think that’s perfectly plausible.