As tax-avoidance Budget approaches… poll reveals Tories ahead on family finances for first time since Boris was in 10th place

Support for Labor policies is plummeting as the scale of the Chancellor's budget tax grab becomes clear.

As Rachel Reeves plans a record $40 billion package of tax rises and spending cuts, a poll has revealed that most voters now think the Conservatives would be better on their finances than Labor.

This is the first time the Conservatives have been in the lead since Boris Johnson became Prime Minister. Just five months ago, Sir Keir Starmer's party was ahead of Rishi Sunak's Conservatives by 15 per cent on this issue.

This unprecedented crisis comes as Reeves prepares to announce a slew of tax-raising measures in her horror budget on October 30, the day before Halloween.

Critics say his plans could stunt growth, cripple the real estate market and push thousands of businesses into bankruptcy.

Support for Labor's financial policies is plummeting ahead of this month's Rachel Reeves budget, Opinium poll finds

This is the first time the Conservatives have been ahead of Labor on family finances since Boris Johnson became Prime Minister.

Conservative Party leadership candidate Kemi Badenoch last night said the public was “seeing the dark economic reality of a Labor government”, adding: “Their union-backed student policies will give us higher taxes and a lower growth.

“The Conservative Party must regain the trust of voters and oust this government as quickly as possible.”

Information provided by the Treasury indicates that Ms Reeves is considering freezing income tax thresholds and increasing taxes, including inheritance tax, stamp duty, fuel duty, capital gains, employers' national insurance contributions and air passenger duties, known as 'holiday tax'.

There are also likely to be “sin taxes” on vaping and gambling companies.

If the reports are correct, it would be the biggest tax increase in history, confirming Tory claims during the election campaign that Sir Keir would drop a “tax bomb” on the electorate. he obtained a large majority.

The Opinium poll put the Conservatives ahead of Labor by 23 to 21 percent when voters were asked which party was most likely to improve their financial situation.

The last time the firm had a lead over the Conservatives on this measure was in February 2021, when Mr Johnson was still in Downing Street, when the Conservatives had a five-point lead.

Labor MPs are increasingly concerned about the impact of planned budget measures on their constituents, and in particular the growing perception that the party has broken its manifesto promise not to increase national insurance or tax rates on income.

As Rishi Sunak's election defeat loomed in July, Sir Keir Starmer's party was ahead of the Conservatives by 15 per cent on this issue.

Freezing income tax thresholds for two years beyond the promised end in 2028 is expected to raise an extra $7 billion by attracting 1 million more people to higher tax rates.

Union sources insisted this did not breach the manifesto promise that income tax “rates” would not increase from the current levels of 20p, 40p and 45p.

The party also pledged not to increase VAT or national insurance for “workers”. Labor now claims that this commitment did not cover the imposition of national insurance on employers' pension contributions.

Sir Keir faced a strong Cabinet backlash following planned spending cuts of up to 20 per cent.

Among those who have written to the Prime Minister to express their concern are his deputy Angela Rayner, who is also Housing Secretary, Justice Secretary Shabana Mahmood and Transport Secretary Louise Haigh.

Ms Reeves is also said to have clashed with Environment Secretary Ed Miliband over the cost of her beloved green projects.

It appears that one minister still refuses to accept the cuts.

While Reeves warns of “tough decisions” ahead, the Opinium poll reveals the extent to which the pre-budget briefings have created a climate of deep economic pessimism: 49 percent of respondents think the The British economy will deteriorate over the next 12 months, down from 34 percent in May.

There will likely be 'sin taxes' on vaping and gambling companies (stock image)

Nearly half, or 46 percent, described their financial situation as “adapting,” while more than a fifth consider themselves “struggling.”

Voters believe that most taxes are too high: council tax, fuel tax, inheritance tax, basic rate of income tax and capital gains tax. They believe that the maximum tax and corporate tax rate is too low.

Poll finds Labor and Conservatives tied when it comes to which party voters think would be best at setting tax levels, while Labor remains ahead on improving public services.

The budget measures, combined with the gift scandals that hit Sir Keir Starmer, have sent the Prime Minister's approval rating down to a record low of minus 31 per cent.

A separate poll by the Portland consultancy found that just 18 percent of voters swallowed Labor's efforts to blame the planned measures on their economic legacy from the Conservatives.

Even among Labor voters, only 27 percent agree with this sentiment: “The previous Conservative government was not honest about the state of the public finances.”

Among those who have written to the Prime Minister to express their concern over the planned spending cuts is his deputy Angela Rayner (right).

Ms Reeves told ministers at Tuesday's Cabinet meeting that plans to plug a 22 billion hole in the public finances would only be enough to “keep public services at a standstill”, and that she needed An additional 18 billion to fund a cash injection for the NHS and avoid real-terms cuts to key departments.

Ms Reeves' allies said the budget would reveal her “vision” and not that of the Prime Minister. An ally said: “Make no mistake, this will be Rachel’s budget. You will see very little of Keir there. This will be his vision for Britain's future.

Opinium's James Crouch said: “Labour's honeymoon ended a long time ago, but the chances of the Budget changing the situation look slim unless there is a mighty rabbit to pull out of the hat.

“With the public pessimistic about the direction of the economy and approval ratings for the Prime Minister and Chancellor at rock bottom, the government should expect a turbulent few weeks.”

Opinium Research conducted an online survey of 2,050 UK adults from October 16-18. Results are weighted to be politically and nationally representative.