Welfare U-turn raises questions over Labour’s tax plans

Sir Keir Starmer and Rachel Reeves face a fiscal headache after concessions to Labour rebels blew a £4.8 billion hole in the Government’s spending plans(Jacob King/PA) - (PA Wire)

Labour faces renewed speculation over its tax plans after concessions to the party’s welfare rebels left a £4.8 billion hole in Rachel Reeves’s spending plans.

The concessions, including the last-minute shelving of plans to restrict eligibility for personal independence payments (Pip), were enough to head off the Government’s first Commons defeat on Tuesday evening.