Rachel Reeves is poised to deliver her Budget this week, following intense speculation regarding potential tax increases aimed at stabilising the nation's finances.
The Chancellor is expected to unveil measures designed to address a significant deficit in public funds and establish a more robust financial reserve, thereby reducing the need for future demands on taxpayers.
Here we look at some of the measures the Chancellor might announce at around 12.30pm on Wednesday, 26 November.
Income tax
Chancellor Rachel Reeves has reportedly abandoned plans for a significant income tax hike, a move that would have broken manifesto pledges.
This U-turn follows less pessimistic forecasts received by the Treasury from the budget watchdog, leading to the measure being dropped from what Speaker Sir Lindsay Hoyle described as the "hokey cokey budget".
Instead, Ms Reeves is now said to be favouring an extension of the existing freeze on income tax thresholds.
Should this be implemented alongside a freeze on National Insurance thresholds, it could generate an estimated £8.3 billion annually for the Exchequer by 2029/30.
By not increasing the thresholds, she will benefit from a process called “fiscal drag”, where as wages go up people are dragged into paying tax for the first time or shifted into a higher rate.
Rail fares
Rail fares will be frozen in the Budget, saving commuters on pricier routes more than £300 a year.
It is one of a series of measures aimed at easing the cost of living despite the increased tax burden many people and businesses are likely to face.
Prescriptions
The cost of an NHS prescription in England will be frozen at £9.90.
Tax for electric vehicles
The Chancellor is thought to be considering a 3p per mile tax for EVs as she seeks to protect revenues as people shift away from petrol and diesel – and the fuel duty that brings in to the Exchequer.
EV buyer subsidy
She will add £1.3 billion to a grant that knocks up to £3,750 off the price of an electric vehicle as part of a package that will also see £200 million go towards the rollout of charging points.
Tax hike on high-value homes
A new levy could be applied to some of the most valuable homes in what has been billed by some as a “mansion tax”.
The move would reportedly revalue some of the most valuable properties across council tax bands F, G and H and hit 100,000 of them with a new surcharge, with the threshold starting at £2 million.
Salary sacrifice
The Chancellor might introduce limits on how much employees can stash in their pensions under salary sacrifice schemes before it becomes subject to national insurance.
Reports suggest she could cap this at £2,000 a year, which would reduce how much people put away in their pension pots and put a dent in take-home pay for those who use the scheme to stay in a lower tax band.
Two-child benefit cap
As pressure has piled up, Ms Reeves is expected to scrap the limit that restricts child tax credit and universal credit to the first two children in most households.
Estimates vary on how much this would cost, with the Resolution Foundation estimating around £3.5 billion by the end of this Parliament (2029/30), while the Child Poverty Action Group and Joseph Rowntree Foundation have lower calculations of around £3 billion by then.
Crackdown on benefits fraud
Ms Reeves will seek to raise £1.2 billion by March 2031 by extending a crackdown on fraudulent and mistaken universal credit payments via the targeted case review (TCR) scheme.
