UK Transport Secretary Heidi Alexander has rejected claims that recent Budget leaks have damaged the economy. Over the past few months, there have been many media reports about possible tax rises, creating uncertainty for businesses and consumers.

Former Bank of England economist Andy Haldane said the constant speculation has caused “paralysis” and is one reason economic growth has stalled. But Alexander said Budget rumours happen every year and people should “wait until the Budget”.

Chancellor Rachel Reeves is expected to announce several smaller tax increases in Wednesday’s Budget, but she is not planning to raise income tax rates. The government may still continue the freeze on income tax thresholds, which means more people could end up paying higher taxes as their income rises.

The Budget is also likely to focus on reducing living costs, cutting NHS waiting lists, and possibly removing the two-child benefit cap — a policy stopping parents from claiming benefits for more than two children.

Opposition parties are divided. Conservatives want an investigation into Budget leaks, while the Greens and some Labour MPs are urging the government to tax the rich instead of low-income families.