The Treasury have rejected demands for major tax cuts after being blindsided by record high borrowing figures on Tuesday.
In December, the Government borrowed more than twice as much in comparison to a year earlier with an eye-watering £27.4billion total, £10billion above the forecast.
A spending increase on household and business energy bills resulted in a public borrowing boost, according to the Office for National Statistics (ONS).
The cost of addressing the UK’s debt pile has also been driven up by the rise of interest rates.
According to the i, Jeremy Hunt was left shocked by the extent of the borrowing spike.
Officials believe unexpected rises will remain a possibility for the foreseeable future as the Government continues to keep domestic energy bills at a certain level, regardless of the global market price and each household’s usage.
A source said: “It was way higher than we expected - but that is the nature of an uncapped, unlimited exposure to the international gas markets.”
Borrowing reached an eye-watering amount in December Dominic Lipinski
The Budget is not likely to see tax cuts, with the Chancellor warning MPs that this is likely to be the case, according to the i.
The only significant cut being considered is scrapping the scheduled rise in fuel duty.
The Government’s plans are to be set out on March 15 as Mr Hunt unveils the Budget.
Current rates of income tax, national insurance, value-added tax and corporation tax are expected to be maintained.
Optimistic forecasts suggest the Conservative Government may be able to get some credit in the bank before the expected date of the next general election by announcing tax cuts in early 2024.
The Chancellor said: “Right now we are helping millions of families with the cost of living but we must also ensure that our level of debt is fair for future generations.
“We have already taken some tough decisions to get debt falling, and it is vital that we stick to this plan so we can halve inflation this year and get growth going again.”
Tax cuts remain a priority for the Government, according to a spokesman for Prime Minister Rishi Sunak.
“He obviously does want to cut taxes,” he said.
“We need to do that from a position of economic stability, from a growing economy. We’ve put in the foundations for that.”