Rachel Reeves has signalled that she is prepared to become the first Chancellor to raise income tax in 50 years as she warned voters “we will all have to contribute” to bolster Britain’s economy.

The Chancellor used a speech in Downing Street to warn that “we all need to do our bit” as she refused to commit herself to Labour’s election manifesto pledges in the forthcoming Budget.

The party previously promised not to raise income taxes, but Reeves is reportedly considering a 2p rise in income tax.

The move, which could be offset by a 2p cut to national insurance (NI), was previously proposed by the Resolution Foundation, an economic think tank previously led by now Treasury minister Torsten Bell.

The Treasury is also understood to be considering a 1p increase , The Telegraph repor

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