Labour MPs urge Reeves to break party's pledge not to raise income tax

Chancellor Rachel Reeves has held talks on whether or not to break Labour’s pledges over tax , with a 1p addition to the basic rate being considered, it was reported yesterday.

Wary of the impact that such an increase during a cost of living crisis would have, she is also considering raising higher or additional tax rates, The Guardian newspaper said.

Reeves is looking to clear an estimated £30bn shortfall in a way that means Labour will not have to return for tax rises again during the course of this Parliament. New Feature

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A 1p addition to income tax would bring in about £8bn, but raising the higher tax rate would raise £2bn and be potentially be less damaging to Labour politically. The Treasury declined to comment.

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