In a gloomy state of the nation speech this week Rachel Reeves signalled that a rise in income tax could be on the cards in this month’s budget.
Labour had promised in its election manifesto not to increase the levy (or the other two “big three” taxes – national insurance and VAT), but the chancellor appears to be preparing the ground for an almighty U-turn to fill a bigger-than-expected £30bn hole in the public finances.
