Economists expect Hunt to use a small modest windfall to deliver tax cuts as he looks to woo the electorate, with the main opposition Labour Party leading by more than 20 points across all national polls.
Yet the chancellor is navigating the constraints of fragile public finances and a stagnant economy that entered a shallow technical recession at the end of 2023.
Inflation has fallen faster than anticipated and market expectations for interest rates are well below where they were prior to Hunt's Autumn Statement in November, but many British households are still feeling the cost of living squeeze, while public services remain extremely stretched.
The Treasury pre-announced plans over the weekend to deliver up to £1.8 billion ($2.3 billion) worth of benefits by boosting public sector productivity, including releasing police time for more frontline work.
Hunt is under pressure from within his own party to deliver tax cuts, a move the International Monetary Fund warned against in January, given the country's spending needs on public services.
Persons:
Jeremy Hunt, Hunt
Organizations:
LONDON, Finance, Budget, Conservative Party, Labour Party, National Insurance, Treasury, International Monetary Fund
Locations:
London