Rachel Reeves drops strongest hint she will raise income tax and scrap two child benefit cap

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Rachel Reeves has dropped her strongest hint yet she will increase income tax in her November Budget . ‌

The Chancellor also criticised the two child benefit cap, comments that will fuel speculation the limit is to be scrapped . ‌

Labour went into the general election promising not to increase income tax, national insurance or VAT . ‌

But a massive black hole is likely to force a u-turn which Labour backbenchers fear will punish the party.

In an interview with BBC Radio 5 Live, Reeves signalled the income tax commitment is likely to be axed: “It would, of course be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending and the reason why our productivity and our growth has been so poor these l