The chancellor confirms he warned cabinet colleagues there is unlikely to be “room” for the size of reductions seen in the autumn.
The chancellor made a hint earlier this month that there would be more cuts on March 6th, stating the government will “stick to its” agenda of “prioritizing tax cuts” because it was effective.
The Office for Budget Responsibility (OBR) estimated that the reduction in national insurance by two percentage points, which he announced in the fall statement, would cost the Treasury £9.76 billion in the 2028 tax year.
Speaking to ITV, he did, however, corroborate rumors that he had forewarned the cabinet that, in what would be the final major fiscal moment before a general election, he might not be able to go that far.
“We go through a process ahead of every budget and autumn statement where you don’t actually know the final numbers until a couple of weeks before, and we’re still in the middle of that process,” he explained.
“As things currently stand—things can always change—it doesn’t appear like I’ll have the same amount of room for those massive tax cuts in the fall as I did.
“And I did mention that to the cabinet, yes.”
