Rachel Reeves billed her £38 billion in tax increases last year – the biggest tax-rising Budget since Black Wednesday – as a ‘one and done’ approach. Reeves is increasingly expected to hike income tax by 2p next month. Reeves is increasingly expected to increase hike tax by 2p next monthReeves could change her plans, but its inclusion is a strong signal that she will break Labour’s manifesto pledge not to increase income tax rates. There are countless clips, tweets and statements of Reeves and her colleagues repeatedly insisting that Labour would not raise income tax, from before, during and after the election. Lucy Powell, the newly-elected deputy leader, told the BBC yesterday that Labour should stand by its manifesto commitment not to raise income tax, national insurance or VAT.
