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 the welfare reform bill) and her........

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