A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the chancellor
This morning a Treasury spokesperson issued this statement in response to the reports that Rachel Reeves has abandoned plans to raise income tax in the budget.
We do not comment on speculation around changes to tax outside of fiscal events. The chancellor will deliver a budget that takes the fair choices to build strong foundations to secure Britain’s future.
Alex Wickham from Bloomberg is reporting that Rachel Reeves dropped her plan to raise income tax in the budget after the fiscal forecast improved. He says:
Rachel Reeves received an improved fiscal forecast from her budget watchdog putting the fiscal hole at £20 billion, leading her to drop plans to raise income tax rates, people familiar with the matter said.
