Rachel Reeves could impose a one-off wealth tax in a bid to avoid manifesto-breaking rises in income tax, VAT or national insurance, according to a think tank.
A wealth tax is one possibility included by the Institute of Fiscal Studies in a list of options for the chancellor to raise tens of billions of pounds in her autumn budget.
Leading economists at the institute, The Times reports, suggest a windfall tax on existing wealth would be a better option than the annual levy which has been put forward by a number of Labour MPs.
The think tank says an “unexpected and credibly one-off assessment” of existing wealth could be an “economically efficient way to raise revenue” while unlikely to impact people’s future behaviour.
However, it indicated the proposed recurring wealth tax would encourage the well off to leave the UK and face "huge practical challenges".
It comes as Reeves recently received an economic forecast from the Office for Budget Responsibility, which The Times understands reveals a shortfall of between £20billion and £30billion in the UK's finances.