The Chancellor is reported to have drafted two separate Budgets as internal arguments intensify. With less than two weeks before the statement, the absence of a settled plan is fuelling anxiety across global markets.

In a week of endless intrigue, the latest Budget rumour claims Rachel Reeves has dropped plans to hike income tax rates due to fears of a backlash from backbench MPs and the public, resulting in an immediate fall in the value of sterling and rise in gilt yields.

The u-turn caught many off guard, especially after the chancellor’s unusual decision to give a ‘scene setting speech’ warning of a tough Budget last week while batting away questions about tax rises.

This unusually timed speech did not answer the critical question about whether the chancellor was going to increase income tax. speculation has swirled for months about wealth taxes, LLP partnership national insurance, hikes to capital gains tax and even an annual property tax.