According to a policy package seen by The Telegraph, Rishi Sunak could be forced to bolster the country’s coffers within weeks if confidence amongst borrowers wavers.
Amongst the proposals are a hike in income tax, an end to the pensions triple lock and a freeze of public sector pay which will likely leave a sour taste in the mouths of many.
Labour has called on both Mr Sunak and Boris Johnson to make a statement “rejecting these plans”, but with boffins pointing to a ‘best case’ scenario of a £337 billion budget deficit and a worst case of £516 billion there may be little they can do.
A Treasury spokesperson said: “The Government’s focus is on supporting families and businesses through this difficult period. That’s why we announced an extension to the furlough scheme, which has already saved millions of jobs, earlier.”
But Labour’s Shadow Chancellor Anneliese Dodds demanded a public rejection of the plans by the Chancellor and Prime Minister.
She said: “A lack of resilience in our public services, caused by ten years of underfunding, has made it harder to deal with the challenge of coronavirus.
“After all our public services and key workers have done to save lives during this pandemic, there must be no return to a society where we lack that resilience.
“Both the Chancellor and the Prime Minister must urgently make a statement rejecting these plans.”