HMRC has published its annual Direct Effects of Illustrative Tax Changes detailing what tax increases Rachel Reeves cold address at the Autumn Budget to cover the government’s spending costs and plug the remaining financial holes.

For example, changing the basic rate of income tax by 1p could generate £6.9bn in the first year of implementation, and by 2028/29 could generate £23bn in total.

However, as Labour has repeatedly promised to not increase taxes on working people it’s unlikely for this to happen, and more likely taxes paid by fewer people will be increased with many speculating capital gains tax could be targeted.

Sarah Coles, head of personal finance at Hargreaves Lansdown said: ‘The government is between a rock and a hard place for the autumn Budget. If they don’t get the growth they’re hoping for, in order to balance the books, they’re likely to have to cut spending and raise taxes.

‘They