UK Chancellor Kwasi Kwarteng is to announce his plan for the public finances early in an attempt to head off a sharp rise in the interest rate which would saddle many households with significantly-higher mortgage costs.
He will lay out his "medium-term fiscal plan" on October 31, days before the Bank of England's next decision on a rate rise, as he scrambles to shore up Britain's credibility with financial markets.
It comes as the Institute for Fiscal Studies (IFS) today warns that Mr Kwarteng will need to find £60billion to balance the books through a tax raid or spending cuts by 2026-27 - equivalent to adding almost 10p on the base rate of income tax.
The Telegraph says Government borrowing costs yesterday spiked back towards levels last reached in the wake of the mini-Budget in a sign that investors are still concerned about a surge in the country's deficit.
Mr Kwarteng's plan will lay out the detail of how he intends to manage the public finances. It was initially expected to be released on November 23, but this has now been brought forward.
The climbdown comes a week after ministers were forced into a U-turn on scrapping the 45p rate of tax, following a Tory rebellion.
Bid to calm markets
Following Mr Kwarteng's announcement that the medium-term plan would be brought forward, Tory MPs said that he was likely hoping his proposals will help to calm markets ahead of the Bank of England's next meeting, on November 3, when it is expected to sharply raise the interest rate.
Markets currently expect rates to hit almost 6% in May next year. Around 1.8million households will be forced to renew their fixed rate mortgages in 2023, according to the banking trade body UK Finance, and an increase of this size would add an estimated £445 a month to repayments on a typical £200,000 loan.
The former Cabinet minister Grant Shapps told the Telegraph: "Conservatives are the party of home ownership and so it is vital that the Chancellor does everything possible to reassure the markets about our fiscal plans.
"Backbenchers like me are therefore very pleased that Kwasi Kwarteng has brought forward his economic plan to this month and has wisely said this will include the Office of Budget Responsibility's analysis too.
"These steps will come as a relief to millions of homeowners who are concerned about their fixed-term mortgages coming to an end. They need to know that this Government is on their side and this move will help."
However, the proposals failed to reassure markets as UK bonds and the pound took another tumble yesterday.