At a glance
• Chancellor Rachel Reeves is preparing to raise income tax in her upcoming Budget a move that would break Labour’s election promise
• The plan is expected to raise over £6 billion a year, with Reeves saying the wealthiest should “do their bit” to restore stability
• The Bank of England has warned that fears over rising taxes are already hurting growth and business confidence, as consumer spending, investment, and hiring all slow ahead of the Budget
Rachel Reeves has said she plans to increase income tax as she prepares to fill the mammoth £30 billion black hole in public finances at this month’s budget.
