Vince Cable has warned that Treasury insiders are increasingly concerned that promises made by George Osborne to cut taxes by £7bn appear increasingly unaffordable. “When you look at the numbers, tax cuts on any significant scale are simply not deliverable unless you make horrific cuts to key public services such as the police and defence,” Mr Cable said. “Technically, of course, you can always make tax cuts, but if you are to avoid hitting services you would have to put up other taxes or cut services massively. It is total fantasy to suggest otherwise.” Gavin Kelly, chief executive of the Resolution Foundation think-tank, adds that the low-wage recovery and disappointing tax receipts is a difficult background against which to be talking about tax cuts or spending rises.