Hunt 'must use' £13bn windfall to slash taxes

THE Chancellor is facing mounting demands to cut taxes as new analysis shows that he has twice as much money to spend as previously expected.

- Martyn Brown

Jeremy Hunt's "fiscal headroom" - the amount he can spend and still hit his target of getting debt falling within five years - was estimated to be £6.5billion.

But using more recent economic data since that official figure in the spring, the Resolution Foundation has estimated that the new figure will be around £13billion, meaning Mr Hunt has more taxpayer cash to spend on a tax cut between now and the general election.

Investing

He is understood to be considering a £10billion cut in business taxes to help head off recession next year.