View Image

Rachel Reeves is set to abandon a plan to raise income tax in the Labour Party Autumn Budget. Ms Reeves has reportedly “ripped up” the main measures.

A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the prime minister, Keir Starmer, and the chancellor.

The U-turn, first reported by the Financial Times, was sent to the Office for Budget Responsibility on Wednesday. The FT reported Reeves may now look at thresholds at which people pay tax, which is likely to be seen as an income tax rise by stealth.

READ MORE Some drivers face £340 bill in 'even steeper' UK pay-per-mile car tax band

“As chancellor, I have to face the world as it is, not the world that I want it to be,” she said 10 days ago.

The u-turn came on the day Kei

See Full Page