Rachel Reeves has been warned she faces having to break Labour’s manifesto pledge not to increase taxes on working people after leading economists said “fiddling around” with smaller taxes – like a mansion tax and a gambling levy – would not be enough to fill the black hole in the Budget.
The warning has been led by Lord Jim O’Neill, the economist, former Treasury minister and ex-Goldman Sachs chairman, who was brought in by Ms Reeves as a top adviser.
