View Image

Chancellor Rachel Reeves has abandoned plans of tax increases at this month's Budget, according to reports.

The report comes after she suggested that "more headroom would be good" to fill a gap in her spending plans.

The decision comes after fears that the plan to break Labour's manifesto pledge could anger both both voters and backbench Labour MPs, according to The Financial Times.

The decision was communicated to the Office for Budget Responsibility on Wednesday, November 12, when the Chancellor submitted a list of “major measures” to be included in her Budget on November 26, according to the newspaper.

The planned rise was proposed to help the Chancellor bridge a fiscal black hole estimated by some economists to be as much as £50 billion, despite going against L

See Full Page