Senior Tories are urging the chancellor to cut taxes in his autumn statement after the Treasury received a £15bn tax windfall.
Tax receipts for this year are higher than expected, handing Jeremy Hunt around £13bn of fiscal headroom, double the £6.5bn he left himself at the March Budget.
But while many in the party are calling for tax cuts, economists have warned that the higher inflation responsible for boosting tax receipts will also feed through into government costs after the election.
The Office for Budget Responsibility, however, expects tax revenue to continue to rise, with annual receipts about £40bn higher in 2027-28 than was expected in March.
