The Chancellor will almost certainly set out fresh tax hikes at the October Budget

It is now pretty much universally accepted that the government will launch a fresh tax raid in October’s budget. City economists expect the Treasury to be on the hunt for between £10bn and £20bn of additional revenue, though given the expensive u-turns on winter fuel payments and welfare reform combined with likely lower growth forecasts the picture could in fact be much worse. The IFS has warned £30bn or even £40bn might be on the table.

The Chancellor has acknowledged the “financial consequences” of recent policy decisions (such as abandoning the money saving measures of........

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