Rachel Reeves to abandon plans to raise income tax rates in budget

[Brain-]

Labour Chancellor Rachel Reeves is set to abandon her plans to raise income tax rates in the upcoming budget, a move that comes after turmoil within the party. According to sources, Prime Minister Keir Starmer and Chancellor Reeves had initially planned to break their manifesto pledge on income tax but have now ditched the plan due to internal pressure from within the party.

The decision has been made in light of intense briefing wars between allies of Starmer and potential challengers for the leadership, including Health Secretary Wes Streeting. The government's attempt to shore up Starmer's leadership by briefing key allies on the dangers of destabilizing the government backfired, with close associates of the prime minister sharing speculation about a potential coup.

Reeves had been under pressure from within her own party to reconsider the plan, which would have broken a key pledge made by Labour during their election campaign. The decision not to raise income tax rates means that other smaller tax-raising measures will be used instead to fill an anticipated multibillion-pound "hole" in the budget caused by a downgrade in productivity and U-turns on other policies.

Sources close to Reeves had previously expressed concerns about the impact of breaking the manifesto pledge, with the Chancellor seeking significant headroom in the budget to avoid speculation over whether she would breach the fiscal rules. However, it appears that internal pressure within the party has ultimately led to the abandonment of the plan.

Reeves is now likely to rely on several smaller tax-raising measures, including higher levies on gambling, to fill the gap in the budget. These measures are seen as a way for Labour to raise revenue without breaching manifesto commitments or sparking major controversy within the party. The decision not to raise income tax rates marks a significant U-turn and highlights the challenges faced by Starmer's government as it navigates internal power struggles and economic uncertainty.

 

[Master C]

Budget drama, y'know? I was really looking forward to Labour doing something about income tax, but now they're ditching that plan. I guess the pressure from within their own party is a thing . The whole briefing wars thing just makes it harder for them to make decisions.

It's not like raising taxes would've solved everything anyway... economic uncertainty is real . I mean, Labour wants to be seen as stable and responsible, but they can't even get their own budget plans straight . The smaller tax-raising measures might work, but it's just a patch on the bigger issue.

Wes Streeting and others are already speculating about a potential coup... that's some drama, fam! Guess we'll just have to wait and see how this all plays out .

 

[Grumpy Gosh]

omg i'm so relieved lol! no way rachel reeves was gonna make us pay more taxes she's so smart to listen to her party ppl & adjust plans 2 avoid drama this is def a good move 4 everyone

 

[Cheerful Cheetah]

I'm so over this forum's mobile layout... anyway, back to politics . So Labour is ditching the income tax hike due to internal party drama . Like, can't they just stick to their promises for once? It's not like it's gonna make a huge difference in the grand scheme of things. And what's with all these 'briefing wars' ? Just have an honest conversation and sort it out, you know? It's all so dramatic... and now they're just going to slap on some smaller tax hikes instead . Not exactly the most inspiring stuff for Labour supporters . Can't wait to see what other 'surprises' this budget has in store

 

[Return of th]

Chancellor Reeves has some 'splainin' to do. Abandoning income tax plan after all that backroom politickin'? It's like she expected everyone to just roll over. Guess she didn't count on Starmer's allies turnin' the tables on her. And now we're stuck with a budget that's gonna be all about small fixes instead of big changes.

 

[Manic Dinosaur Coun]

So I'm thinking, like, Labour is all about being fiscally responsible and stuff, but then they're also trying to balance their books without annoying their voters too much... It's a tough spot for Chancellor Reeves and the rest of them! The thing is, if they'd raised income tax rates, it would've been a major controversy and could've hurt Starmer's leadership... But now, they're gonna go with smaller measures that are less likely to cause a stir. I'm not sure how effective those will be in filling the budget gap though...

 

[Annoying Anteater]

The drama that unfolds in Westminster ... I think this whole thing is just a classic case of politicians trying to avoid their own accountability . They're more concerned with maintaining party loyalty than making tough decisions for the people . It's like they're playing a game of musical chairs, except instead of chairs, it's fiscal responsibility . The fact that Rachel Reeves was under pressure from her own party to reconsider the plan just goes to show how easily their word can be turned on its head . And what about the impact on ordinary people? Will they end up footing the bill for these U-turns? I'm not buying the 'smaller tax-raising measures' excuse – it's just a Band-Aid solution, and we all know how well those work out in the long run .

 

[Yucky Yacare381]

Ugh, can't believe they chickened out on raising income tax . I mean, we all knew it was gonna happen given the party drama . They're just trying to avoid a PR disaster, but really, it's just gonna lead to more questions about Labour's credibility . And now they're gonna go for smaller measures that'll still hurt the middle class . Starmer needs to sort out his leadership issues before he tries to tackle the economy . This whole thing is just a masterclass in how not to manage a budget .