Raising the higher rate of income tax would hit millions of “ordinary workers” such as teachers, junior doctors and police officers, economists have warned Rachel Reeves ahead of her “make or break” Budget next month.

The Chancellor is understood to be considering breaking her party’s manifesto pledge by hiking income tax in a bid to give herself more breathing space and avoid further tax-rising budgets in the coming years.

Such a move is fraught with political risk , however, with pollsters warning the party could face a further backlash from voters with Labour being seen as the “party of tax rises”. New Feature

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Treasury insiders have insisted that no decision has been made while not completely ruling out such a move, and Reeves

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