Rachel Reeves has reportedly told the Office of Budget Responsibility (OBR) she will hike income tax at the Budget – seemingly confirming reports that Labour will break its manifesto pledge not to do so.
The Chancellor is preparing to give a difficult Budget on November 26 with pressure on her to fill a hole in Britain’s finances.
The forecaster has been told by the Treasury that a rise in personal taxation is one of the “major measures” being planned in the fiscal event.
The plans would break with Labour’s headline manifesto pledge: not to increase income tax, VAT or national insurance.
Matthew Wright is joined by Danny Sriskandarajah – the Chief executive of the New Economics Foundation think-tank, and James Matthewson, a former spokesman for the Labour Party.
Credit to : LBC