Brits face the prospect of fresh tax hikes as the Chancellor scrambles to plug a £50 billion black hole in the public finances.
Jeremy Hunt is considering rises to tax on dividends and capital gains tax - levied on sales of shares and assets like property - as he prepares to deliver his Autumn Statement on November 17.
The Chancellor is expected to announce massive cuts to public spending in an attempt to wrestle the economy back under control after Liz Truss's chaotic stint in No10.
In a break from Tory norms, Mr Hunt is eying plans for fresh tax rises for wealthier Brits, including the headline rate, reliefs and allowances on capital gains tax.
He is also looking at a cut to the £2,000 tax-free dividend allowance and a 1.25 percentage point increase to all dividend tax bands, according to the Telegraph.
Hikes to taxes on dividends would be a blow to savers and many small business owners who pay themselves in dividends rather than taking a salary.
A Government source confirmed to the Mirror that the ideas were being considered but no decisions have been made.
Craig Beaumont, chief of external affairs at the Federation of Small Businesses, said: “If government takes this step, alongside corporation tax, it’s making it harder and harder for small business owners to make any profit and so to make a living.
"It’s the opposite of what you’d do if you want growth.”
But Torsten Bell, chief executive of the Resolution Foundation, tweeted: "Giving people big capital gains/dividend tax free allowances is bonkers - why do we think those able to take their income in a range of ways should pay much lower tax than a straight wage earner?"
Major infrastructure projects including Northern Powerhouse Rail - a high-speed rail line in the north of England - and Sizewell C - a new nuclear power plant in Suffolk - are also being reviewed as the Treasury struggles to save cash.
Hard-working Brits also face losing thousands of pounds in "stealth taxes" in the upcoming Autumn Statement.
Rishi Sunak and Mr Hunt are looking at extending the freeze on Income Tax and National Insurance thresholds in a bid to fix the economic turmoil triggered by Liz Truss 's disastrous mini-Budget.
The stealth tax rise would net the Treasury an estimated £4bn a year, according to the Resolution Foundation - as it would drag more people into higher tax brackets as salaries rise with inflation.
The Bank of England warned on Thursday that the UK was heading into the longest recession in 100 years, with a "very challenging" two year slump ahead.
It hiked interest rates to 3% in a bid to curb inflation - the highest jump in more than 30 years.
The Governor of the Bank of England confirmed that the UK was just hours from financial meltdown in the wake of Ms Truss's mini-budget, which spooked markets with £45bn of unfunded tax cuts.
Andrew Bailey said the Bank was forced to step in "quickly" and "decisively" to mitigate a "very real threat to financial stability".
