Rachel Reeves has reportedly abandoned plans to break Labour's manifesto and increase income tax in the upcoming Autumn Budget.

The Chancellor was ready to raise income tax by 2p while reducing national insurance by the same amount, a move that would contravene Labour's promise not to increase taxes on 'working people. '.

In recent weeks, high-ranking government officials appearing in media interviews have suggested a withdrawal from these commitments as Reeves grapples with a £30bn deficit in public finances.

However, the initial set of Budget proposals submitted to the UK fiscal watchdog – including an income tax rise – have now been dismissed, effectively sending Reeves back to square one.

This development, first reported by the Financial Times, leaves Reeves with fewer options to g

See Full Page