Ruth Gregory, deputy chief UK economist at Capital Economics, said: “If the chancellor was hoping March’s figures would provide more scope for tax cuts at a fiscal event later this year, he will have been disappointed.
“Just based on the larger-than-expected 2023-24 budget deficit and the recent shift up in market interest rates, he may have even less fiscal ‘headroom’ (perhaps about £5 billion) for tax cuts than the £8.9 billion left over in March.”