File image of Rachel Reeves. Picture by Kirsty O'Connor / HM Treasury.

The OBR - the government's alleged financial watchdog - now appears to have taken pity on the Chancellor.

The UK government will no longer raise income tax rates as the economic outlook has brightened, according to the Office for Budget Responsibility (OBR).

Newswires report that "improved UK forecasts led Reeves to drop the tax hike", as they quote "people familiar with the matter."

Chancellor Rachel Reeves was preparing to raise income tax by 2p in the upcoming November 26 budget, owing to the emergence of a £30BN deficit in her fiscal rules.

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