By Suban Abdulla

LONDON (Reuters) -British finance minister Rachel Reeves should break election pledges not to raise taxes on working people so she can build “real fiscal headroom” in her budget this month, the Confederation of British Industry said on Thursday.

Reeves has warned taxes are likely to rise in her Nov. 26 budget. She did not explicitly rule out raising taxes on workers later this month despite a promise in the Labour Party’s election manifesto not to hike income, value-added taxes or social security contributions paid by workers.

Last year Reeves imposed a big tax rise on employers’ social security contributions to raise money for infrastructure spending, which hurt business confidence. The CBI said she should refrain from further hikes in business taxes further.

“The goa

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