View Image

Rachel Reeves looked set to become the first Chancellor in 50 years to break a manifesto pledge not to raise income tax. ‌

Back in the mid-Seventies the-then Labour Government was desperately trying to fend off economic stagnation and get a grip on inflation hammering household budgets. ‌

Income tax rises were viewed as a painful but necessary way of raising badly needed revenues . ‌

The parallels between then and now won’t be lost on Reeves

But hiking the basic rate would have hit workers and handed Labour’s foes an easy stick with which to beat them.

There are other ways the UK Government should be raising revenues, including clampdowns on corporate tax avoidance and a relentless pursuit of those who ripped off the public purse during the Covid emergency.

See Full Page