CHANCELLOR Rachel Reeves ’s tax and spending plans breached a Labour manifesto commitment – and should be treated with a “healthy dose of scepticism”, the UK’s leading economics think tank has said.

Responding to the delivery of the Labour Budget on Wednesday, the Institute for Fiscal Studies (IFS) also cast doubt on whether the UK Government would stick to the “spend now, pay later” approach Reeves laid out in her statement.

In Scotland, the University of Strathclyde ’s Fraser of Allander Institute further raised concerns about Reeves’s “piecemeal approach” to taxation, warning there is a “significant chance” that her measures will not raise the revenue predicted.

Among the headline policies in the Labour Budget was a freeze on income tax thresholds until 2030, a 3p-per-mile tax

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