Jeremy Hunt eyeing cuts to public spending as recession deals blow to spring budget plans

Jeremy Hunt could slash public spending by billions of pounds to fund pre-election tax cuts in next month’s budget.

Treasury officials are considering the cuts, which opponents say would load more austerity on to struggling public services.

The moves comes as Mr Hunt faces increasing economic woes on multiple fronts. Official statistics show the UK economy entered recession at the end of last year.

And Mr Hunt is understood to have been told by the official spending watchdog on Wednesday night that he has less room than expected at the start of the year to reduce taxes.

The Office for Budget Responsibility is thought to have warned there is around £12 billion of what is called ‘headroom’ down from £24 bn.

Shadow dubbed it “Rishi’s recession” as she said the could “no longer credibly claim that his plan is working”, and that his “promise to grow the economy is