Tax & Spend

Hunt Set for £10 Billion Budget Boost as UK Economy Improves

  • Extra fiscal headroom diminishes threat of more austerity
  • Chancellor expected to bank windfall rather than give it away
Jeremy Hunt Photographer: Chris Ratcliffe/Bloomberg
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Britain’s economic prospects have improved enough to hand Chancellor of the Exchequer Jeremy Hunt an extra £10 billion ($12 billion) at next month’s budget, removing the threat of a further round of austerity, experts say.

Earlier this year, the Office for Budget Responsibility warned Hunt that it had overestimated medium-term growth and he faced the prospect of more belt-tightening to fill a multi billion-pound fiscal hole.