Labour descended into fresh turmoil after a Budget U-turn over planned income tax rises sparked market turmoil and a war of words between Downing Street and MPs.

Government officials insisted that Sir Keir Starmer and Rachel Reeves remain committed to controlling the public finances despite ditching a heavily suggested proposal to increase the rate of income tax , which would have broken a key manifesto pledge.

And insiders said that ministers were still prepared to confront Labour MPs with unpopular measures – dismissing claims that the Chancellor had caved to backbench discontent. New Feature

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But after a day of uncertainty at Westminster and in financial markets, both investors and MPs expressed concern about the contents of the

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