Sir Keir Starmer has refused to rule out tax increases in the spring statement next month if the Government needs to raise more money for its plans.
The Office of Budget Responsibility is due to issue its forecasts on March 26, which economists say could be an opportunity for tax rises or increased borrowing.
There is speculation that Chancellor Rachel Reeves might look to raise taxes or increase borrowing as growth since the Budget in October has undershot expectations while inflation - now at 3 per cent - is at it highest for 10 months, and government borrowing costs are high.
Speaking to reporters en route to a meeting with President Donald Trump in Washington DC, the Prime Minister admitted that preparations for the Spring statement were now "at the early stages".
Sir Keir Starmer has refused to rule out tax increases in the spring statement next month if the Government needs to raise more money for its plans
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Asked directly if he would be "happy" for Chancellor Rachel Reeves "to raise taxes or cut spending if needed to meet your fiscal rules next month", he said: "I am not going to get ahead of myself until we have made decisions.
"But as I have said before, in terms of the big decisions on tax obviously the Budget was the place that we took those decisions - but as ever, going into a statement I am not going to say in advance what we might do and what we might not do.
"But let me not let hares running, the big decisions were in the Budget of last year and that's the way we are approaching this Spring statement."
