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Rachel Reeves has abandoned plans to hike income tax for millions of households.

The Chancellor will be announcing her Budget on Wednesday, November 26.

She has been widely expected to raise the basic rate of income tax for everyone earning above £12,570, which would have broken a Labour manifesto pledge.

READ MORE: Rachel Reeves to confirm £440 rise for state pensioners born before 1951

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However, it's now emerged plans for an income tax hike - which would have been the first for decades - has been scrapped.

It follows a tumultuous few weeks for the Government, amid reports a backlash over the Budget could leave it in a perilous position.

Ms Reeves had previously said she was prepared to do whatever

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