Rachel Reeves has warned that tax rises and more public spending cuts are in the pipeline for the October 30 Budget.The Chancellor is finalising her Budget, with several drafts having been sent to the financial watchdog the Office for Budget Responsibility which will do the sums on the Labour government’s proposals to work out how much they will cost or save.

Rachel Reeves is preparing an inheritance tax raid as the Chancellor seeks to hike taxes and cut spending by as much as £40bn in the Budget.