Food prices will increase despite the government’s drive to reduce the cost of living retailers have warned as Rachel Reeves prepares to give her make-or-break Budget on Wednesday.

The Chancellor is also expected to allow mayors to introduce tourist taxes – making the cost of staying in hotels and Airbnbs more expensive – but will hike the minimum wage and end the two-child benefit cap.

And, on the eve of the Budget on Tuesday, the Government announced that milk shakes and some packaged coffees would be included in the “sugar tax”, adding more to a weekly shop. New Feature

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The measures comes as Rachel Reeves will opt for a ‘smorgasbord’ of taxation instead of a manifesto-busting income tax hike as she seeks to raise enough mon

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