Rishi Sunak is preparing to delay a new tax on packaging after opposition from MPs and retailers over the costs it would add to household shopping bills.
The Telegraph understands that ministers are holding talks about pushing back the planned rollout of the scheme to charge retailers and manufacturers for the cost of councils recycling their packaging.
It would be the second major government initiative to be delayed in recent days over concerns about its impact on consumer bills, amid soaring inflation and the prospect of a general election as soon as next spring.