Rachel Reeves ‘considering breaking Labour manifesto pledge with income tax raid’
Rachel Reeves might break a Labour manifesto pledge
- Rachel Reeves is reportedly considering raising income tax to address an estimated public finance shortfall between £30bn and £50bn.
- This potential move would contradict Labour's pre-election pledge not to increase taxes on working people.
- Options being discussed include adding 1p to the basic rate of income tax or raising higher and additional rates.
- Advisers suggest a bolder approach to tax rises could provide more financial 'headroom' and prevent further increases later in the parliament.
- Other potential tax measures include higher charges for professionals using limited liability partnerships and a 'mansion tax' on expensive homes.