Labour is inching towards scrapping the two-child benefit cap in another spending splurge - despite fears Brits face huge new tax rises at the Budget.

Rumours are swirling at Westminster that Keir Starmer could signal a shift on the policy at party conference next week, as he desperately tries to placate mutinous MPs.

Government sources are stressing that no final decisions will be made before the child poverty task force reports - expected in time for the Chancellor Rachel Reeves' package on November 26.

Work and Pensions Secretary Pat McFadden said this morning that any announcement on easing the cap would spell out how the £3billion a year cost would be met. Bridget Phillipson - Downing Street's de facto candidate for Labour deputy leader - has said the move is 'on the table'.

Nigel Farage has already promised to ditch the limit on benefits claims as he woos Labour voters, but the Tories have insisted making handouts more generous is wrong.