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Rachel Reeves has issued an income tax update after announcing her tax U-turn ahead of the Budget later this month. The autumn budget will be delivered by the Chancellor on Wednesday, November 26.

Until recently, she was expected to break a Labour Manifesto promise by hiking income tax in the face of a yawning gap in her spending plans - hinting as recently as Monday that the alternative would be “deep cuts” to public investment.

However, she is now understood to have ditched this plan after improved forecasting from the Office for Budget Responsibility - but other tax rises have not been ruled out.

The Chancellor will now reportedly freeze income tax thresholds for an extra two years and could also bring in a new levy on high-value properties.

Reports that the Chanc

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