Laura Suter, head of personal finance at AJ Bell, said: “In a swift about-turn, a nation that was getting tax breaks across the board just weeks ago is now braced for an onslaught of tax rises in this week’s statement.
“The new chancellor has the unenviable task of filling the Government’s financial black hole, tackling the current cost of living pressures and not deepening the UK’s recession, all while keeping markets on side.
“In a bid to avoid spooking markets again, the Chancellor Jeremy Hunt’s approach seems to be to leak everything so that no-one is surprised when he gets up at the dispatch box.
“From extending the freeze on tax allowances to a rumoured reduction in the threshold for the highest rate of income tax, the rabbits are already out of the hat.”
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