Tax dodgers face having cash taken straight from their bank accounts under new HMRC powers expected in Wednesday's Budget

Shadow chancellor Andrew Griffith called the move 'absurd'. He accused Labour of letting the taxman 'empty your bank account over a few hundred pounds and leave you with nothing to pay the rent'. Chancellor John Healey is expected to unveil the plan in Wednesday's Budget. HMRC can currently seize cash only from people owing over £1,000 who keep at least £5,000 afterwards.

Some 4.8 million people and firms owe under £10,000, an average of £950 per individual.

Fines and interest could be taken too, with no court order needed.

Tax Policy Associates founder Dan Neidle warned that machines could mistake genuine hardship for deliberate dodging.