On Wednesday, Mr Sunak will produce a fiscal statement at a pivotal time for the country when hard pressed families are facing enormous increases in their cost of living.
Mr Sunak is expected to say he will 'stand by' hardworking families facing rising household billsThere are also question marks about what the Treasury plans to do to ease the pain of the health and social care levy which is due to come into force in April.- will involve serious increases in tax payments for most families at the very point that inflation is nearing its peak.
Elsewhere, the government cut VAT for the hospitality sector during the pandemic and it remains at a reduced rate of 12.5%. However, government borrowing is now £26bn lower than expected for the financial year so far, putting the chancellor in a"better" position to ease the cost of living crisis - according to the Resolution Foundation.
The figure is on course to come in below the £183bn forecast by the government's Office for Budget Responsibility in October, largely due to stronger-than-expected tax revenue.
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