Reeves lays ground for income tax rises

Rachel Reeves has indicated a willingness to raise income tax for the first time in 50 years, breaking manifesto pledges. In a pre-Budget speech on Tuesday, the Chancellor stressed the need for difficult decisions to address a £30bn financial gap, arguing: “If we are to build the future of Britain together, we will all have to contribute.” The Treasury is understood to be considering a 1p or 2p increase, despite some Labour colleagues warning that hiking income tax will severely damage the party’s chances at the next election. Critics outside the party say Reeves is failing to take responsibility for the effects of Labour’s policies, laying the blame instead on Brexit, the pandemic and global trade shifts.