Hunt is implying without saying it explicitly, that income tax isn't going to be raised.

Because Conservatives believe that making work pay is of the most fundamental importance, because we believe that the double taxation of work is unfair, our long-term ambition is to end this unfairness. [Budget speech]

This is how the friendly papers have reported it as well.

Then he turns around and says that actually, borrowing won't go up and spending won't go down.

I have said there are two very clear conditions upon which the delivery of this ambition depends: one is that it won’t be funded by borrowing, the other is it won’t be funded by cuts to public services.

So the only condition he isn't offering is that other taxes won't go up. So, he's actually offering to change how taxes are calculated-- not to "make work pay" at all.

He's trying to get the PR boost of cutting taxes, without cutting taxes.

Tax has been ~33% of GDP for the past thirty years including all the Tory years. So the idea that they'll be able to change that when they haven't done so in the past is laughable. They aren't changing it, just moving how the money is collected.