Rachel Reeves’ budget to unleash ‘dirty dozen’ tax rises affecting workers, savers and pensioners

The Chancellor of the Exchequer is set to deliver her second Budget on Wednesday, when she is set to raise taxes to fill a black hole in the public finances.

Ahead of the statement in the House of Commons, Ms Reeves said she would “take the fair and necessary choices to deliver on our promise of change”.

She said: “I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.

Ms Reeves added that three priorities for the Budget would be cutting the cost of living, cutting NHS waiting lists alongside delivering public service reforms, and starting to reduce the cost of public debt.

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The Chancellor said: “And I will push ahead with the biggest drive for growth in a generation.

“Investment in roads, rail and energy. Investment in housing, security and defence. Investment in education, skills and training.

“So together, we can build a fairer, stronger, and more secure Britain.”

As the Chancellor aims to address the cost-of-living crisis, she has announced minimum wage rates are to increase next year, giving a pay rise for millions of workers.

Ms Reeves accepted the latest recommendation from the Low Pay Commission the day ahead of the Budget.

From next April, the National Living Wage will rise by 4.1 per cent to £12.71 an hour for eligible workers aged 21 and over, which the Government said would increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers.

Ms Reeves is widely expected to adopt what is being called a “smorgasbord” approach to raising taxes at the Budget.

This could include hiking council tax levies on expensive properties, a so-called “mansion tax”, and freezing income tax thresholds, a move which would drag more people into paying higher tax without raising the headline rate.

Ministers on Wednesday also announced plans for regional mayors to tax overnight tourism stays if they wished.

The soft drinks levy, also known as a “sugar tax”, is also set to be expanded to include pre-packaged milkshakes and lattes.

Reports claim that a fuel duty freeze will be extended as part of the announcements in a boost for drivers.