Jeremy Hunt said he will "resist the urge" to cut taxes now in order to protect the fight against inflation as he backed the Bank of England's decision to increase interest rates.
The Bank announced at noon that it was hiking rates for the tenth time in a row, this time from 3.5 per cent to four per cent, as it continued its efforts to bring down double-digit inflation.
The Chancellor said he supported the move and the Government will continue to ensure its decisions are in "lockstep with the Bank's approach".
He said: "Inflation is a stealth tax that is the biggest threat to living standards in a generation, so we support the Bank's action today so we succeed in halving inflation this year.
"We will play our part by making sure government decisions are in lockstep with the Bank's approach, including by resisting the urge right now to fund additional spending or tax cuts through borrowing, which will only add fuel to the inflation fire and prolong the pain for everyone."
Mr Hunt said last week that it is "unlikely" that the Government will be able to announce "any significant tax cuts" at the Budget in March. The comments today appeared to be a fresh attempt to manage expectations ahead of the Budget.
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