Chancellor Kwasi Kwarteng is expected to reverse the recent rise in national insurance contributions in a mini-budget next week and could bring forward the pledge by his predecessor Rishi Sunak to cut income tax by 1%.

The Treasury has been putting the final touches to the announcement next Friday 23 September that will give more detail on winter support packages for households and businesses.

Prime Minister Liz Truss, who will be in New York for the UN general assembly, announced last week that the energy price cap would be lowered for households and that “equivalent support” would be offered to businesses for at least six months.

Ms Truss has committed herself to ditching a planned rise in corporation tax and there has been talk about changes to business rates and cuts to VAT to help with the energy crisis.

Earlier this week, Downing Street promised more details about the support that would come next week alongside a pledge to backdate energy costs for businesses if there is a delay to getting the complex new scheme off the ground.

Mr Kwarteng is expected to establish a new government target of 2.5% economic growth every year, supplementing the Bank of England’s 2% inflation target.