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The Guardian - UK
The Guardian - UK
Business
Larry Elliott Economics editor

Jeremy Hunt’s tax cut plans face setback as government borrowing tops £20bn

silhouetted figures pass the Bank of England under a bright blue sky
Jeremy Hunt is relying on an improvement in the public finances to justify tax cuts before voters go to the polls. Photograph: Tolga Akmen/EPA

Jeremy Hunt’s plans for pre-election tax cuts have received a setback after higher spending on benefits and lower tax receipts pushed government borrowing above £20bn last month.

The Office for National Statistics (ONS) said the budget deficit – the gap between public spending and tax receipts – was £1.5bn higher than a year earlier and the fourth highest for an April since records began.

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