Rachel Reeves urged to reconsider Labour manifesto tax pledges

Rachel Reeves is facing more intense pressure to turn her back on Labour manifesto commitments.

Chancellor Rachel Reeves has been warned that tweaking small levies and relying on the wealthy to contribute to the state would hinder growth as another prominent report has called for Labour manifesto commitments to be reversed.

In a report by the Institute for Government (IfG), Labour strategists were criticised for the party’s “original sin” of making pledges not to raise income tax, national insurance and VAT.

The IfG suggested that manifesto commitments should be re-considered at this year’s Budget, making it the second influential think tank in two days to push for radical reform after the left-leaning Resolution Foundation said Reeves should raise income tax and simultaneously cut