Labour will try to force a vote on holding an emergency budget at 7pm tonight to tackle the cost-of-living crisis.
The party will try to tighten the screws on Chancellor Rishi Sunak, saying measures he’s announced for struggling families aren’t enough.
Some Tory backbenchers accept an emergency budget is needed - and Labour will challenge them to back it.
But it’s not expected to pass.
Shadow Chancellor Rachel Reeves said “We need an emergency Budget now from the government to tackle the cost of living crisis.
“And we need a real plan for growth so we have a fairer and more prosperous economy.”
Now, as if to calm those Tories down, stories are starting to emerge of the Chancellor drawing up plans for later in the year.
A possible windfall tax U-turn seems to be edging closer, and plans have been drawn up to quadruple the £150 Warm Home Discount.
Meanwhile there’s speculation that a 1p cut in income tax could be brought forward to this year, originally due in 2024.
It’s all speculation and sources stress nothing is confirmed. But what are the ideas that have been reported? Here’s what you need to know.
Warm Home Discount quadrupled
The Warm Home Discount Scheme is already being raised (from £140 to £150) and extended to 780,000 more households in October.
It will be available to 2.7million to help pay energy bills - mostly people on low incomes or who get a Guarantee Credit element of Pension Credit.
Now it’s thought Business Secretary Kwasi Kwarteng has put forward an idea of raising this to £500.
According to The Times, Treasury officials are examining options for a one-off rise in the discount this winter - £300, £500 or even £600.
It’s understood the ideas have been kicking about for some time with no clear plan yet. A source said the idea would be kept under review.
But a government source told The Times a decision would be needed in the next fortnight. It needs to be sorted out some time in advance of winter.
Bringing forward a 1p income tax cut
Rishi Sunak has already pledged to cut income tax by 1p in the pound from 20% to 19% from 2024.
Dismissed as a cynical election ploy by his critics, this would save a £30,000 earner around £175 a year.
But those on under £12,570 a year see no benefit, and because the tax threshold is being frozen, the gains could be wiped out by inflation.
Under pressure from Tories to cut tax - after the raising the burden to the highest in decades - there are claims Mr Sunak could bring this forward.
And he set hares running yesterday. Asked by a Tory MP last night if his “absolute priority, coming up to the Budget” was a tax cut he agreed.
Mr Sunak added: “That is our priority… Our priority is to keep cutting taxes for those in work, including by cutting income tax, as soon as the public finances allow.”
Sources insisted nothing had changed since the Chancellor promised a tax cut in 2024, but pressure is growing on him from Tories amid reports of a special Budget in the Autumn.
Windfall tax on oil and gas giants
A Tory windfall tax U-turn edged closer today after internal government polling showed the levy was "wildly popular" with voters.
Last night Conservative MPs thwarted a Labour plan to slap a £2billion one-off tax on oil and gas giants.
But Boris Johnson and Rishi Sunak left the door open to imposing the levy unless fossil fuel firms invest in their industry.
And a study found eight in 10 people back a special tax raid on energy companies with profits swollen by soaring prices.
Mr Sunak told MPs: “We Conservatives do not believe that windfall taxes are the simple and easy answer to every problem.
“However, we are pragmatic, and we want to see our energy companies, which have made extraordinary profits at a time of acutely elevated prices, investing those profits back into British jobs, growth and energy security.
“I have made it clear and said repeatedly that, if that does not happen soon and at significant scale, no option is off the table.”
But Tory tax hawk Liz Truss made clear she’s not in favour, saying: "My view is lower taxes are the best way to attract more investment."
