Chancellor Rachel Reeves is eyeing up a tax raid on middle-class professionals in a bid to fill the “black hole” in Britain’s public finances ahead of next month’s budget.

Figures emerged on Tuesday that Labour’s expansion of the state has caused Government borrowing to skyrocket to record highs in a non-pandemic environment as national debt smashed £2.9trillion.

The professions rumoured to be potential targets in Ms Reeves’ latest move include doctors, lawyers and accountants.

The Chancellor conceded this week that Britain’s economy is “not working as it should”, before blaming Brexit and austerity for the state of public finances.

Business Secretary Peter Kyle affirmed that Labour’s high levels of spending was necessary, adding that “we are doing what it takes to invest our way out of the challenge we inherited from the Tory government”.

However, Conservative Party leader Kemi Badenoch clapped back at the minister, saying the borrowing levels proved that Britain’s economy was “spiralling out of control”.

Shadow Chancellor Sir Mel Stride said: “If Rachel Reeves had a plan – or a backbone – she would stand up to her backbenchers, get spending under control and cut the deficit.

“Instead she is plotting to hike taxes yet again to pay for her failures.”

The Treasury has not denied claims that Ms Reeves is considering introducing a new levy on those operating through limited liability partnerships as part of efforts to raise funds for public finances.

Around 200,000 people currently using such partnerships are exempt from paying employer’s National Insurance.

Scrapping that exemption could raise roughly £2billion annually, but it would hit many high-earning professionals.

However, a fresh report has called on the Chancellor to prioritise making cuts to public spending.

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The Policy Exchange has outlined proposals to reduce public spending by £115billion a year.

The think tank suggested measures such as ending the pension triple lock, reducing foreign aid and halting benefits.

ONS numbers showed tax receipts of £523.7billion for the first two quarters of the financial year, almost £37billion more than the same time last year.

However, the record tax receipts were overshadowed by the Government’s spending of £623.1billion.

Between April and September, the Government was forced to borrow almost £100billion to bridge the disparity.

In turn, Britain’s national debt soared to £2.9trillion.

It comes amid forecasts that the consumer price index rate of inflation for the 12 months to September 2025 will reach four per cent this week.

Economists claim the inflation surge stems from multiple factors including elevated petrol costs, increased airline ticket prices and higher private education expenses.

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