Swingeing spending cuts and tax rises may not have to be as tough as previously feared after a rare improvement in the UK’s financial situation.
Rishi Sunak and Jeremy Hunt are said to be considering using falling gas prices and a ‘dullness dividend’ reaped from financial markets after the change in government to rein in their drastic plans.
A new report today suggests a £40billion black hole in the nation’s finances could have shrunk by up to £15billion by the time they present their delayed Autumn Statement on November 17, meaning cuts to public spending could be eased, and tax rises reduced or scrapped altogether.
The forecast has led to growing confidence in Downing Street that only minor changes will be required to public finances, the Telegraph reported.
Gas prices have fallen in recent days thanks to unseasonally warm autumn weather, while the yield on gilts – government bonds – has fallen back following the removal of Liz Truss as PM, meaning borrowing costs for the…
