Jeremy Hunt urged to spend on public services after inflation bolsters finances

Resolution Foundation says cuts earmarked for after election are even less tenable' now Treasury is 11.4bn better off than forecast

High inflation boosted the government's finances in August, putting pressure on the chancellor, Jeremy Hunt, to increase support for state services, a thinktank has said.

Government borrowing was 11.6bn in August and almost 70bn in the first five months of the current financial year. This left the chancellor 11.4bn better off in the 2023-24 year so far than official forecasts predicted in March.