Raise income tax Reeves urged, as Labour splits on Budget

Senior Labour figures are pressing Rachel Reeves to break with the party’s manifesto commitment not to raise income tax .

Increasing income tax would be a more effective way to fix the public finances rather than tinkering with a range of smaller measures, some MPs believe.

In November’s Budget, the Chancellor is expected to have to raise tens of billions in fresh taxes because of poorer economic forecasts and U-turns on policies such as welfare reform and cutting winter fuel payments. New Feature

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Latest estimates suggest she will be £22bn short of meeting her fiscal rules of paying for day-to-day expenditure through taxation rather than borrowing.

However, Reeves is hemmed in on what taxes she can increase because of the commit