The Chancellor has said he will use the Budget to “level” with the public about the challenges facing the economy and the need to pay back vast sums of borrowed billions.
According to reports, Mr Sunak is likely to announce some tax hikes – although whatever he does do will have to fit in with Conservative party manifesto pledges not to raise income tax, national insurance or VAT.
Some speculate he will instead raise corporation tax from its current level of 19 percent to 23 percent.
There are also reports he will freeze the personal income tax allowance, which usually rises in line with inflation, pushing many taxpayers into higher tax brackets and raking in about £6billion for HMRC.
Conservative backbenchers are strongly opposed to tax rises, while the Labour leader Keir Starmer has warned they risk “choking off” a quick economic recovery.