View Image

HMRC could hike income tax by 4p as Rachel Reeves prepares to deliver her Autumn Budget. The Labour Party Chancellor has been warned she may have to raise income tax by as much as 4p in the pound.

The Institute for Fiscal Studies (IFS) said the Chancellor would need to create a £50 billion “buffer” in the November 26 Autumn Statement. Anything less would leave Labour “limping from one forecast to the next”.

The report, part of the IFS’s annual Green Budget, said: “Whilst 1.4% of GDP is not an inconceivable amount of headroom, it would require significant spending cuts or tax rises to reach it.

READ MORE Motorway drivers face unexpected £200 fines after 'being held accountable'

"On the tax side, it would take a four percentage point increase in all rates of income tax or i

See Full Page