The deal was concluded late on Friday afternoon by Mrs May, Jeremy Hunt, the health secretary, Philip Hammond, the chancellor, and Simon Stevens, chief executive of NHS England. However, sources said that the meeting broke up without agreement on where significant chunks of cash would come from. “By the end of the meeting, some sources of funding had been more heavily pencilled in than others,” a ministerial source said.
Plans to raise money from freezing all personal allowance and national insurance thresholds at the end of the parliament, revealed in The Times last week, remain leading options and would raise nearly £4bn. Borrowing could account for £8bn to £10bn.
Plans put forward to defer corporation tax rate cuts, delivering £6bn, were not signed off. Ministers now hope that the Office for Budget Responsibility will upgrade growth in the budget, reducing the necessary borrowing and tax rises, but the plans remain underfunded by up to £11bn.
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