The haul - the highest ever for July - was boosted by Rachel Reeves' employer national insurance raid. However, that policy is also blamed for making it harder for firms to hire.

The Tories warned 'Britain can't afford Labour' after figures showed consumer prices rose by 3.8 per cent last month compared with a year earlier.

Public sector net borrowing falls to £1.1bn as chancellor explores tax-raising options in autumn budget

The haul - the highest ever for July - was boosted by Rachel Reeves' employer national insurance raid. However, that policy is also blamed for making it harder for firms to hire.

The Labour minister is reportedly set to introduce a six-year freeze on income tax thresholds rather than increasing them in line with the cost of living or inflation .