Rachel Reeves has reportedly decided against increasing income tax rates in the upcoming Budget scheduled for November 26, according to the Financial Times. The decision to abandon this plan comes as Prime Minister and Chancellor reconsidered their stance, fearing that raising taxes could provoke backlash from voters and Labour MPs, potentially violating a commitment made in the party’s election manifesto.
In a recent appearance on BBC Breakfast, Culture Secretary Lisa Nandy stated that “no decisions were made or set in stone” until Reeves officially presents the Budget in the House of Commons. The Treasury has not yet publicly commented on the matter.
Although Reeves did not explicitly confirm plans to raise income tax rates, she had previously refrained from ruling it out. Earlier this month, she delivered a pre-Budget speech highlighting the importance of making “necessary choices” and suggesting that all segments of society would need to “contribute.”
This latest development raises questions about the Labour Party’s fiscal policies and their potential implications for the government’s relationship with voters and party members.
Source: https://www.bbc.com/news/articles/c0mx3nv7zy8o?at_medium=RSS&at_campaign=rss