A desperate Rachel Reeves may enforce a 2p increase on income tax in her upcoming Autumn Budget, it is feared. The Chancellor is expected to introduce tax hikes as she attempts to fill the £30 billion black hole in public finances on November 26.

During PMQs yesterday (Wednesday, October 29), Sir Keir Starmer refused to rule out increases to income tax, National Insurance and VAT. Now, fears the Chancellor may strike income tax have arisen after one proposal was reportedly put to the Treasury outlining a 2p increase in income tax, which could be combined with a 2p cut in employee NICs. It comes as Ms Reeves is expected to hit wealthy Brits with higher taxes despite Labour’s pledge to avoid increases in their Budget. She has called on rich people to “contribute” more in order to rebuild the economy.

As reported by the Daily Mail, the main rate of income tax has not been increased since 1975. The move would reportedly raise around £6 billion, falling well short of the amount needed to balance the books.

While insiders have suggested the Chancellor will avoid “radical” changes in her Budget, pensions, property and landlords could be in the firing line to raise money. A “mansion tax” on homes worth over £2 million has been rumoured.

The Office for Budget Responsibility (OBR) recently signalled a 0.3% point reduction in long-term productivity forecasts. This could inflict a whopping a £20billion deterioration in the Treasury’s position by the end of the decade.

The OBR will deliver its final “pre-measures” forecasts on Friday (October 31). However, it will not start costing any of the Government’s proposals until Monday, November 10.

As a Conservative rally on Thursday morning, party leader Kemi Badenoch warned: “If you want more of something you don’t tax it.” She added: “If she cannot get a grip on controlling spending then you sack her.”

Ms Reeves previously said the Budget would be centred around economic growth, which has been “neglected as a tool of fiscal policy in the last few years”. She has refused to rule out tax increases, which the Labour Party manifesto pledged against.

Keir Starmer previously said the commitment Labour made to voters before the General Election last year “stands”. However, he has recently said no Prime Minister would set out their plans in advance.

He said: “The Budget is on November 26 and we will lay out our plans, but I can tell the House now that we will build a stronger economy, we will cut NHS waiting lists and deliver a better future for our country.”