Rachel Reeves will present her first budget on 30 October in what Paul Johnson, director of the Institute for Fiscal Studies, said could be "the most consequential since at least 2010".

The chancellor will need to raise taxes by £25bn if she wants to keep spending in line with a key indicator of the nation’s economic health, according to the Institute for Fiscal Studies (IFS).

In its annual ‘Green Budget’ analysis, the IFS warned that the government would have to dramatically increase the £9bn of tax rises outlined in its manifesto to meet the pressures on public services.

The chancellor is likely to stick to her fiscal rule, which requires day-to-day spending to be met by tax revenues. This means she cannot increase borrowing to fill the gap.

Rachel Reeves will present her first budget in the Commons on 30 October. Paul Johnson, director of the IFS, said this budget could be “the most consequential since at least 2010”.