Hunt Faces Dilemma on Tax Cuts in Budget
- Hunt warned not to announce unfunded tax cuts in budget that could upset markets
- Estimated "headroom" for tax cuts is £18bn, less than expected, limiting options
- Further spending cuts deemed unrealistic so can't fund more ambitious tax giveaways
- Tax cuts could pressure BOE to delay rate cuts, hurting borrowers longer
- Pound could sell-off if Hunt misjudges mood and causes upset like 2022 mini-budget