“Kite flying” briefings about potential tax rises in the Budget are hitting consumer confidence and risk tanking economic growth, Labour MPs have warned Rachel Reeves.

MPs in the 2024 cohort fear a repeat of last year when gloomy commentary from ministers on the state of the public finances was blamed for stalling the economy.

There is particular concern that various mooted taxes in the housing sector could “gum up” the property market by slowing down sales as buyers and sellers wait to see if they are likely to lose or gain from any changes.

It follows a series of leaks about possible tax rises which could feature in the Budget, with the introduction of national insurance on landlords’ rental income the latest suggestion .

The Chancellor is expected to raise taxes this autumn

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