Rachel Reeves scraps plans for income tax hike

Reeves Budget has been tossed into more uncertainty.

Rachel Reeves is understood to have scrapped plans to break Labour’s manifesto and hike income tax in the forthcoming Autumn Budget.

The Chancellor was poised to hike income tax by 2p whilst cutting national insurance by the same amount in a move that would break Labour’s pledge to not raise taxes on ‘working people.’

Over the last few weeks, senior government figures on media rounds have pointed to a retreat from the commitments as Reeves faces a £30bn black hole in public finances.

But now the first set of Budget proposals sent to the UK fiscal watchdog – including an income tax increase – have been kicked to the curb, effectively sending Reeves back to the drawing board.

The move, which was first reported by the Financial Times