Tax hikes in a number of areas are being considered by the Treasury to deal with the cost of the coronavirus, reports have emerged this morning.
Up to £20bn ($26.7bn) could be raised by upping capital gains and corporation tax, changes that could come into effect as soon as the November budget, according to the Sunday Times.
Other proposals have included a revamp of inheritance tax and an introduction of a digital sales tax, according to the paper.
The report suggested that chancellor Rishi Sunak could take aim at pensions, businesses, the wealthy and foreign aid.
The aid budget has already been cut by £2.9bn from £15.8bn this year.
Sunak is looking at raising corporation tax from 19% to 24% in a move that would boost tax revenues by around £12bn in 2021, the report said.
Among the ideas being considered is capital gains tax being paid at the same rate as income tax, while pensions relief would be cut, according to separate reports in the Sunday Telegraph.
The newspaper also said that raising fuel and other duties was also being looked at.
Among other casualties in potential budget reforms could come from cutting foreign aid.
When approached by Yahoo Finance UK for comment, a Treasury spokesperson said: “We do not comment on speculation about tax changes ahead of fiscal events.”
Earlier this month, figures revealed that public sector borrowing has hit more than £2trn for the first time in history as ministers invest billions of pounds to support the economy through the pandemic.
The Office for National Statistics (ONS) said official bodies borrowed £26.7bn in July, the fourth highest amount of any month since records began in 1993.
Debt reached 100.5% of GDP at the end of July, the first time it had risen above 100% since 1961, the ONS experts said.
The Treasury’s new tax proposals has reportedly had pushback from Number 10.