LONDON (Reuters) – Britain posted a smaller-than-expected budget deficit of 7.77 billion pounds ($9.9 billion) in December, the Office for National Statistics said on Tuesday, welcome news for finance minister Jeremy Hunt as he works on possible new tax cuts. Economists polled by Reuters had expected public sector net borrowing, excluding state-owned banks, of 14 billion pounds, the same as the estimate from the government’s budget watchdog. The ONS said the government’s debt interest bill was the lowest for the month of December since 2020, reflecting the fall in inflation. Borrowing in the f…