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<\/p>\nJeremy Hunt dismissed desperate Tory pleas for early tax cuts today despite government borrowing coming in lower than expected.<\/p>\n
Public sector net borrowing was \u00a314.3billion last month, significantly below the \u00a320billion that had been pencilled in by analysts.\u00a0<\/p>\n
In the year to September the sums racked up were \u00a319.8billion lower than the \u00a3101.5billion the OBR watchdog forecast. Debt has also been revised down as a proportion of GDP after the UK’s bounceback from Covid was upgraded.<\/p>\n
Separate figures from HMRC show the tax take reached \u00a3392.5billion in the first half of the financial year, up 6 per cent on the same period in the previous year.<\/p>\n
Receipts of inheritance tax – something many Conservatives want the government to target – were \u00a33.9billion, \u00a3400million higher than before.\u00a0\u00a0<\/p>\n
However, the Chancellor dashed hopes that he might use the wriggle room to act on taxes – given new impetus following disastrous by-election defeats for the Tories.<\/p>\n
Mr Hunt said: ‘We had to borrow during the pandemic to protect lives and livelihoods, but since then Putin’s invasion has pushed up inflation and interest rates.<\/p>\n
‘This means we spent twice as much on debt interest last year as we did the previous year.<\/p>\n
‘This is clearly not sustainable; we need to get debt falling and reduce public sector waste so that those delivering public services can get back to what they do best; teaching our children, keeping us safe and treating us when we’re sick.’<\/p>\n
Treasury sources stressed there is still an ‘inflation risk’ attached to tax cuts, saying the Chancellor’s position had not changed.\u00a0<\/p>\n
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Jeremy Hunt dismissed desperate Tory pleas for early tax cuts today despite government borrowing coming in lower than expected<\/p>\n
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In the year to September public sector borrowing was \u00a319.8billion lower than the \u00a3101.5billion the OBR watchdog forecast<\/p>\n
![](\"https:\/\/i.dailymail.co.uk\/1s\/2023\/10\/20\/15\/76805695-12654013-image-a-18_1697813555463.jpg\")
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Separate figures from HMRC show the tax take reached \u00a3392.5billion in the first half of the financial year, up 6 per cent on the same period in the previous year<\/p>\n
The ONS also said net debt stood at \u00a32.599trillion at the end of September, equalling around 97.8 per cent of UK GDP.\u00a0<\/p>\n
That was is 2.1 percentage points higher than the same time last year – but has been revised down after upgrades to the figures on economic recovery from the pandemic.<\/p>\n
Some economists have suggested Mr Hunt might be more likely to deliver tax cuts or giveaways next year due to the figures.<\/span><\/p>\n Ashley Webb, UK economist at Capital Economics, said: ‘We continue to think that the Chancellor will have some wiggle room for a few pre-election giveaways in the March budget.<\/p>\n ‘But with the full upward impact on borrowing from higher interest rates and weaker GDP growth still coming down the line, any package of pre-election net tax cuts or spending rises will probably need to be modest.’<\/p>\n The loss of the true-blue strongholds in Tamworth and Mid Beds has triggered a fresh wave of introspection among Conservatives, with even those in safe seats concerned about their prospects.\u00a0<\/p>\n Receipts of inheritance tax – something many Conservatives want the government to target – were \u00a33.9billion over six months, \u00a3400million higher than before<\/p>\n Although by-elections are not directly reflected at general elections, a swing of the scale seen overnight could theoretically reduce the Tories to 20 seats.<\/p>\n Ex-Cabinet minister John Redwood tweeted: ‘In the two by elections thousands of Conservative voters in 2019 stayed at home.\u00a0<\/p>\n ‘The Labour vote was similar to 2019. Many people want the government to stop the boats, improve the quality and efficiency of services and cut taxes to get some growth.’\u00a0<\/p>\n![](\"https:\/\/i.dailymail.co.uk\/1s\/2023\/10\/20\/15\/76805741-12654013-image-a-17_1697813544521.jpg\")
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