Reeves must abandon manifesto tax pledges, think tank says amid £30bn Budget black hole
Rachel Reeves needs to row back on her manifesto pledge not to raise income tax, national insurance or VAT, a leading think tank has said, as the chancellor seeks to fill a £30bn black hole at the Budget. The chancellor should “reject the path of least resistance” and consider rowing back on her “rash” commitment not to raise the three main taxes at the Budget, the Institute for Government (IfG) said, arguing Labour’s “unrealistic” approach to tax has left Ms Reeves reaching for “piecemeal changes”.It comes amid a growing expectation that the Treasury will have to increase taxes by as much as £30bn in the upcoming Budget, as a result of sluggish productivity, government U-turns and higher than expected interest payments. Higher tax and spending cuts are set to drag on UK growth next year More