Rachel Reeves speech latest: Pound plummets as chancellor signals income tax hikes in Budget
Pound falls to six-month low after Rachel Reeves signals tax rises to come
- The pound has fallen to a six-month low against the dollar after Rachel Reeves declined to rule out tax increases to address public finance shortfalls.
- Sterling dropped 0.3 per cent to $1.3064, its weakest level since April, following the shadow chancellor's pre-Budget speech.
- The FTSE 100 Index also saw a decline, falling 1 per cent or 92.5 points to 9608.9 after the address.
- Reeves hinted at difficult decisions ahead of the Budget on 26 November but refused to confirm whether taxes would be raised for working people.
- Speculation is growing that Labour's manifesto promise to avoid income tax hikes may be broken, with a leading think tank warning that tax rises are "inevitable".