Rishi Sunak has refused to rule out smashing a hole through the Tory manifesto and raising income tax or VAT to pay for coronavirus.
The Conservatives’ manifesto pledged less than a year ago: “We will not raise the rate of income tax, VAT or National Insurance.”
But Mr Sunak admitted in his spending review yesterday: “Our economic emergency has only just begun”.
And he’s already now broken a different manifesto pledge to keep paying 0.7% of GDP into foreign aid - cutting it to 0.5%.
Asked if he’d come back in a year or two years and cut the tax pledge too, Mr Sunak told BBC Radio 4’s Today programme: “I’m not going to get drawn on future fiscal policy, as much as you try.”
Boris Johnson's official spokesman said "we remain committed to the manifesto pledge", but refused to say if he'd continue being committed to it in the future.
Mr Sunak said the £394billion scale of borrowing this year is "not sustainable" but that "now is not the time to address that".
He added: "But once we get through this and we have more certainty about the economic outlook we will need to look at how we can make sure we have a strong set of public finances."
The government’s budget watchdog the OBR has already warned people could face higher taxes and cuts to public spending by the end of this Parliament.
The OBR predicted tax rises or spending cuts of between £21 billion and £46 billion would be needed just to stop debt spiralling above GDP.
And the fiscal watchdog said between £20 billion to £30 billion in spending cuts or tax hikes would be needed to balance revenues and day-to-day spending and stop debt from rising by the end of the current Parliament.
The Resolution Foundation think tank said it was "certain that tax rises will end up playing a bigger part in any real plan to put the public finances on a sustainable footing once the recovery is secured".
Institute for Fiscal Studies Director Paul Johnson tweeted: "SR (Spending Review) assumes zero spending on Covid after next year. It assumes Universal Credit is cut in April. It assumes non-Covid spending will be £10bn p.a. less than expected in March. Not sure any of these will happen. Implying quite a lot more borrowing even than the £100bn forecast."
The decision to cut foreign aid has prompted outrage from Tory MPs and former Tory Prime Minister David Cameron.
Mr Cameron tweeted: “0.7% is ultimately very simple. We share this planet with millions who are starving, with mothers who die needlessly in childbirth, with children who die of preventable diseases and with countries that are broken by conflict, corruption and poverty.
“The questions are: do we care, do we act, and do we lead?
“The promise of 0.7 meant that we - Global Britain - answered 'yes' to all three. And that's a promise worth keeping.”
Pressed repeatedly by the BBC, Mr Sunak eventually admitted the aid cut was a political choice.
He said: “We made a choice. We made a choice yesterday to prioritise people’s jobs, public services and helping this country get through coronavirus.
“I think that is the right choice to make and I think it is a choice the British people will support.”
Mr Sunak insisted the aid cut was not permanent - but refused to say when it will end, and it could last more than one year.
