Good news. Borrowing over the last ten months has been found to be £30billion lower than expected.
So far this financial year the Treasury has borrowed £117billion.
That's a lot of borrowing, but it's around £30billion less than the Government's forecasters had expected.
So far this financial year the Treasury has borrowed £117 billion.
Jordan Pettitt
And therefore gives the Government a bit of wiggle room compared to expectations.
Lucky Jeremy Hunt. £30billion would allow the Chancellor to not raise corporation tax after all, as MPs like John Redwood and Simon Clarke have been arguing.
The Chancellor could choose to not add to the tax burden from struggling businesses - which is due to be hiked from 19 per cent to 26 per cent in April.
If he did so, the Treasury would still have £12billion left over, enough to give the nurses for example a considerable pay rise.
Yet a lower tax path does not seem likely from this government.
The Financial Times is reporting today that a secret memo reveals the Treasury would rather give all public sector employees a pay rise of 5 per cent and not cancel their planned tax rises.
Tom Harwood
GB News
The political judgement for No10 is do they fear their low tax backbenchers more or striking public sector workers.
And it looks likely that the decision has already been made. The UK will continue to be high tax, high spend, despite the rosier than expected fiscal situation.
Decisions decisions. The Budget will be delivered on the 15th of next month.
