Baroness Minouche Shafik, who was appointed to No10 on Monday, used an interview earlier this year to suggest upping income tax and VAT to boost Treasury coffers.

The moves indicate that Starmer believes he needs better economic advice before a budget later this year that is expected to include further tax rises.

Baroness Minouche Shafik, who was appointed to No10 on Monday, used an interview earlier this year to suggest upping income tax and VAT to boost Treasury coffers.