DEVELOPING: Rachel Reeves Rules Out Income Tax Hike

Breaking News: Rachel Reeves Rules Out Income Tax Hike Chancellor Rachel Reeves has made a last-minute decision to rule out raising income tax rates at the Budget on November 26. This move comes as a surprise, given recent indications that she would increase the rates. The decision is partly due to better-than-expected economic forecasts. Instead, Reeves may opt to freeze or lower income tax thresholds, the salary levels at which various rates kick in. Other taxes could also be raised. Government sources stress that they are still making "tough choices". The UK government's borrowing costs rose in reaction to reports about the U-turn on income tax rates. However, yields eased after further reports that the decision was made. This move is a significant departure from Labour's election manifesto promise not to raise income tax rates. Reeves' decision has sparked a mix of reactions, with some analysts praising the move as a responsible step to manage the economy. Others have expressed disappointment, citing concerns about the impact on low-income households. This is a developing story, and further details are expected to emerge in the coming hours and days. The Budget is set to take place on November 26, and the government will provide a comprehensive overview of its economic plans.