Taxes are set to rise across the board when the chancellor, Jeremy Hunt, unveils his autumn statement in parliament tomorrow as he grapples with an estimated £60bn fiscal black hole.
On income tax an increase looks unlikely but the stealthy chancellor may freeze the levels at which people pay tax and national insurance in a move that could bring in £30bn a year by 2026.
The Centre for Economics and Business Research think tank said the move would mean 3mln workers paying more income tax.
High earners may be hit by a reduction in the level at which the top rate kicks in to £125,000 from £150,000, while inheritance tax thresholds could also be frozen beyond the existing 2025-26.
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Wealthier pension savers may face an extension to the freeze on the lifetime allowance while the pension triple lock is also up for grabs with prime minister Rishi Sunak so far refusing to commit to increase the state pension in line with inflation.
Business will not escape the cuts with the levy on oil and gas profits likely to be increased to 35% and extended until 2028.
Tweaks to capital gains and dividend taxes are also on the cards as Hunt seeks to target those with broader shoulders, while the level at which businesses must register to pay VAT is likely to remain at £85,000, another stealthy move.
It won’t all be about tax. Although Sunak and Hunt will be desperate to avoid headlines of austerity 2, there will be cuts to public spending.
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Much of the speculation has surrounded defence spending but given renewed hostilities in Ukraine it is hard to see Hunt going too hard here.
However, he is expected to announce that there will be no more money to help government departments due to additional costs brought about through inflation.
Infrastructure projects are also under threat with the most likely to be pared back the northern rail link although HS2 and a number of smaller projects are also under the microscope.