Philip Hammond has hinted the Government could raise taxes over the course of the next parliament in a bid to ease years of austerity.
The Chancellor said the Conservatives had never pledged not to raise "some taxes" and suggested that £3billion of cuts to council spending budgets might not ahead.
Mr Hammond also gave vent to his frustration that he was not allowed to defend the Conservatives’ record on the economy since 2010 during the campaign.
He told the Andrew Marr programme: “I would have liked to have made much more of our economic record which I think is an excellent one, creating 2.9 million new jobs, getting the deficit down by three-quarters.
Asked if he was kept of the airwaves during the campaign, he said: "I’m not going to speculate about what happened inside the campaign leadership team.
"The end result is that in my judgement we didn’t talk about the economy as much as we should have done.”
The admission that taxes might rise was attacked by rightwing think-tanks as “shortsighted” and “extremely misguided”.
Mr Hammond said the public is "weary of the long slog" it has endured since the financial crash.
He said the Government would “look at” plans it had for cuts to winter fuel allowances and ending the triple lock on pensions.
Theresa May’s failure explicitly to rule out tax increases during the election campaign worried Thatcherite groups.
Mrs May, the Tory leader, said voters faced a choice between "lower taxes under the Conservatives or higher taxes under Labour" and repeatedly failed to commit to tax cuts for higher earners if the Conservatives won the election.
Independent forecasts show that by the end of the decade the tax burden - the amount of the nation's income drawn from tax receipts - will reach its highest level for 30 years. It currently stands at 34 per cent of gross domestic product.
In an interview on BBC1’s Andrew Marr programme, Mr Hammond left the door open to raising taxes, as he insisted borrowing more is "not the solution".
Asked if he would go ahead with £3 billion of cuts to councils, he said: "We've set out a series of measures that are already legislated for.
"We have other proposals that we will now have to look at again in the light of the General Election result and in the new parliament.
"I will be delivering a budget in the autumn and you will find out then what we are proposing. There's not going to be a summer budget or anything like that."
Pressed on whether the Government would have to change direction, particularly if it does a deal with the DUP, which is opposed to cuts to the winter fuel allowance and the end of the triple lock on pensions, Mr Hammond said: "We will look at all these things.
"Obviously we are not deaf. We heard a message last week in the General Election and we need to look at how we deal with the challenges we face in the economy.
"I understand that people are weary after years of hard work to rebuild the economy after the great crash of 2008-09, but we have to live within our means.
"More borrowing, which seems to be Jeremy Corbyn's answer, is not the solution.
"We have never said we won't raise some taxes. Overall, we are a government that believes in low taxes and we want to reduce the burden of taxes overall for working families."
The Conservative manifesto scrapped the "triple lock”, which guaranteed there would be no rise in national insurance, VAT or income tax, in favour of a general statement of intent to lower tax and simplify the tax system.
It comes after Lord Kerslake, the former head of the Civil Service, suggested that Mrs May's failure to secure a majority would lead to a re-think of 1 per cent cap on public sector pay and austerity.
He told Civil Service World: “It’s hard to see any party doing austerity now. The landscape is changing, and the consensus on public-sector pay will have to be revised.”
Responding to Mr Hammond's suggestion that taxes could increase, Mark Littlewood, the Director General of the Institute of Economic Affairs, which was Margaret Thatcher’s favourite thinktank in the 1980s, said: "The economic evidence is clear: spending is far too high and our tax system is far too complicated.
"Hiking taxes further instead of continuing to make savings is extremely misguided. The Conservatives are a low-tax party in rhetoric only."
John O'Connell, Chief Executive of the TaxPayers' Alliance, added: "The government already plans to increase the tax burden to a level unseen for 50 years so it beggars belief that they're considering squeezing even more out of the spluttering economy.
"Such a shortsighted reaction of raising tax to fund politically expedient policies will be terrible for jobs and economic growth. As we've seen with corporation tax cuts, low taxes can generate greater revenues, with more money becoming available for essential public spending.
"The best way to help families has always been to leave more in the pockets of those who have earned it."
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