Rachel Reeves to abandon plans to raise income tax rates in budget

Starmer and Reeves are now likely to rely on smaller tax-raising measures to fill the financial ‘hole’. Photograph: Temilade Adelaja/Reuters

Rachel Reeves is set to abandon a plan to raise income tax in her budget with the chancellor reportedly “ripping up” the main measures in the wake of turmoil in the party.

A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the prime minister, Keir Starmer, and the chancellor.