The chancellor Rishi Sunak will almost certainly focus on extending government emergency support rather than introducing tax increases when he delivers the Budget next week, according to a former advisor to ex-Tory chancellor Philip Hammond.

There is widespread speculation that a capital gains tax rate increase is likely, along with a hike in corporation taxes.

According to The Sun, Sunak will likely announce a hike in corporation taxes – up to as much as 25% from 19% over a number of years, while raising capital gains will target second-home owners.

A government source said: “Action needs to be taken now, not in November and not next year, but now.”

But Poppy Trowbridge, who was a special adviser to the now former chancellor Philip Hammond, says it is currently not the right time for tax rises for families or businesses.

Speaking to BBC Politics Live yesterday, Trowbridge warned that while tax hikes will eventually be needed, now is not the right time.

She said: “The economy remains totally and utterly closed for the most part right now. As far as I am concerned, we are still in emergency measures. So this is not a normal Budget. It’s not even really Rishi Sunak’s Budget. This is the Treasury and Sunak team extending emergency measure to get us to that point where the economy can begin to operate on its own again.

“I don’t think we will see any tax hikes, it’s absolutely not the time to be doing that. I don’t think there is any chance of capital gains tax rising.

“But he [the chancellor] will strive as he has done every time he has made a fiscal intervention like this, to signal that this remains a Conservative administration and at some point we will have to look at balancing the books.”

Trowbridge added: “I think we’ll hear some tough fiscal talk signalling perhaps a rise in corporation tax – nothing near the top end of what’s been trailed, but I don’t think it’ll come into action right away because again, the economy is in total freeze.”