Rachel Reeves expected to drop plans for income tax rise

Rachel Reeves has abandoned plans to increase income tax rates in the Budget on November 26, according to reports In the Financial Times.

The newspaper says the chancellor and prime minister are driven to raise the tax, which would not fulfill the promise made in the election manifesto, for fear it would anger voters and Labor MPs.

Speaking to BBC Breakfast, Culture Minister Lisa Nandy said “no decisions were made or finalized” until Reeves delivered the Budget to the House of Commons.

Treasury did not respond to a request for comment.

Reeves has not publicly said he would raise income tax rates but has refused to rule it out.

Earlier this month, she also delivered a pre-Budget speech in which she emphasized the need to make “necessary choices” and warned that everyone would have to “contribute”.