JEREMY Hunt has racked up an extra £30bn to spend in next week’s budget, according to new research.
The Resolution Foundation today said strong tax receipts and low borrowing leaves Treasury coffers billions better off than predicted.
Jeremy Hunt will unveil the Spring Budget on Wednesday next week
Additional funds are expected to be channelled into support packages for Brits battling the cost of living pinch.
HOAR understands the current Energy Price Guarantee will be extended to save households from a brutal £500 bill hike next month.
Gas and electricity costs are set to soar from £2,500 to £3,000 per year.
But at next Wednesday’s budget the Chancellor is poised to hit the brakes on a rise until July.
Mr Hunt is also being urged to not to hike fuel duty following a popular 12-year freeze.
Two dozen Tory MPs have written to the Chancellor demanding the levy is either reduced or remains frozen.
Ex-Home Secretary Priti Patel, leading the group, said such a move would “provide an enormous relief and much-needed certainty” during a cost of living squeeze”.
Meanwhile, business leaders are urging Mr Hunt not to hike corporation tax from 19 to a whopping 25 per cent.
Treasury sources say Mr Hunt is firmly of the “progressive” view that wealthy companies should pay a fair share.
But some economists think the tax will stifle growth and deter investors from pumping money into the British economy.
Cara Pacitti, Senior Economist at the Resolution Foundation, said: “The Chancellor will want his upcoming Budget to signal a new, lower inflation and higher growth, phase for the UK economy. And there has certainly been some good news with the economy expected to be bigger and borrowing lower this year than feared.
“But there is no escape from having to focus on the cost-of-living crisis that families are still living through. Jeremy Hunt is likely to act to prevent April’s spikes in energy bills and fuel duty.
“Looking further ahead, the Chancellor needs to end public sector pay disputes and wrestle with the UK’s stagnant economic growth, by focusing on encouraging more firms to invest, and people to work.”