Rachel Reeves ‘set to ditch plan to raise income tax’ in Budget
Rachel Reeves has abandoned plans to break Labour’s manifesto pledge and raise income tax at this month’s Budget, it has been reported.The chancellor had been expected to hike income tax in the face of a yawning gap in her spending plans, hinting as recently as Monday that the alternative would be “deep cuts” to public investment.But the Financial Times has reported that she has now abandoned those plans over fears they could anger both voters and backbench Labour MPs.The decision was communicated to the Office for Budget Responsibility (OBR) on Wednesday, when the chancellor submitted a list of “major measures” to be included in her Budget on 26 November, according to the newspaper.An income tax rise would help her bridge a fiscal black hole estimated by some economists to be as much as £50bn, but it would also break Labour’s clear manifesto pledge not to raise income tax, national insurance or VAT.Rachel Reeves may ditch plans to hike income tax at this month’s Budget More
