At a glance
• Rachel Reeves has given her clearest sign yet that she will break Labour’s manifesto to raise income tax
• The Chancellor said she could stick to the manifesto but that would require ‘deep cuts’ to capital spending
• Ms Reeves made clear she will not axe investment spending as she seeks to get economic growth going
Rachel Reeves has all but admitted Labour’s manifesto pledge not to hike income tax will be axed in her Budget.
