Rachel Reeves is set to unveil significant tax increases in next month's Budget, potentially raising over £20 billion to address a £22 billion fiscal gap. The Resolution Foundation, a left-leaning think tank, has proposed reforms including hikes in capital gains tax, inheritance tax, and national insurance, emphasizing the need to target wealthier individuals while adhering to Labour’s manifesto commitments. These changes could involve aligning capital gains tax rates with dividend tax rates and introducing a new road pricing scheme charging drivers an extra 6p per mile. Analysts from Goldman Sachs warn that these measures, while necessary, could dampen economic demand. The proposed tax increases are viewed as a 'time-honoured tradition' following elections, with Reeves expected to make 'painful' decisions regarding public finances. Overall, the government faces pressure to implement these reforms to fund essential public services and investments while navigating complex fiscal challenges.