Reeves poised to raise income tax by 2p saying ‘each of us must do their bit’

Millions of workers are likely to be asked to pay higher taxes in this month’s Budget after Rachel Reeves signalled she is considering hiking the basic rate of income tax during an unusual pre-Budget speech.

The Chancellor refused to recommit to Labour’s election manifesto promises not to raise income tax, national insurance or VAT and warned voters “we will all have to contribute” to plugging the black hole in the nation’s finances.

She was speaking from Downing Street in what the Treasury called a “scene setter” speech ahead of the Budget on 26 November as she seeks to fill an estimated blackhole in the nation’s finances of £20-£30bn. New Feature

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Treasury sources refused to dampen speculation that Reeves’ comments meant she was