'£20bn headroom' for pre-election Budget giveaways

JEREMY HUNT has gained more space for a "big pre-election splash" in his March budget, economists said today after better than expected public finances figures.

- Nicholas Cecil, Jonathan Prynn and Daniel O'Boyle

The Chancellor is expected to unveil a series of giveaways, possibly to income tax and changes to child benefit, in the spring ahead of an autumn general election.

Today's figures suggested he may get "headroom" of around £20 billion which would give him leeway for some tax cuts.

The Government borrowed less money last month, at £7.8 billion, than in any December for four years but debt remains at historic highs, according to the Office for National Statistics.