Chancellor Jeremy Hunt is said to be preparing up to £60bn in tax rises and spending cuts as he navigates “difficult decisions” on the UK’s battered public finances.
Treasury sources confirmed that as much as £35bn of the “fiscal tightening” could come in the form of a reduction in spending, signalling a further squeeze on hard-pressed services.
Ministers must present the key points of the plan to the Office for Budget Responsibility (OBR) so that it can prepare its economic forecast in time for the autumn statement on 17 November.
