The Institute for Public Policy Research (IPPR) claimed that the government could be doing more to raise revenues by increasing taxes on dividends and buybacks.

With households experiencing a steep drop in real incomes, taxing dividends and buybacks in line with the ordinary tax schedule would redress the balance, the IPPR report said.

The IPPR estimates that taxing dividends under the ordinary income tax schedule would raise an additional £6bn ever year.

This would result in more government support for struggling households and businesses facing the cost of living crisis, without having to resort to public service cuts.