Labour had laid the ground to break a manifesto pledge on taxes for working people but has now made a U-turn
Rachel Reeves is set to abandon a plan to raise income tax in her budget with the chancellor reportedly “ripping up” the main measures in the wake of turmoil in the party.
A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the prime minister, Keir Starmer, and the chancellor.
It comes after a week of extraordinary briefing wars in the party as allies of the prime minister suggested he would fight any leadership challenge, with some pointing to the health secretary, Wes Streeting, as a potential challenger, which he publicly denied.
The bombshell tax U-turn, first reported by the Financial Times, was sent to the Office for Budget Responsibility on Wednesday. Downing Street did not deny the reports but said it would not comment on budget matters.
