Reeves must raise income tax – then focus on helping workers

Today, Rachel Reeves gave a clear indication that income tax will rise . It’s a defensible move on economic terms, if done right, but there may be a heavy political price to pay.

Labour’s 2024 manifesto was a work of fiction , but it clearly pledged no rises in income tax: “Labour will not increase taxes on working people, which is why we will not increase … the basic, higher, or additional rates of income tax.”

Labour stated there would be no need to raise taxes more widely , either. Instead of the magic money tree, Reeves and Starmer presented themselves as the magic management team – competent managers of the Government who would increase confidence and growth. They should have realised that economies don’t run on “vibes”, but fundamentals.

It feels like nothing is working. The