DEVELOPING: Rachel Reeves Abruptly Ditches Income Tax Hike Plans in Budget U-Turn

Breaking News: Labour Chancellor Abandons Income Tax Hike Plans Labour Chancellor Rachel Reeves has made a surprise U-turn, deciding against raising income tax rates in the upcoming Budget on November 26. This move comes after weeks of indications that she would increase the rates, breaking Labour's election manifesto promise. The decision is partly due to better-than-expected economic forecasts, which have reduced the need for tax hikes. Instead, Reeves may opt to freeze or lower income tax thresholds, the salary levels at which the various rates kick in. Other taxes could also be raised. The U-turn has sparked a reaction in the financial markets, with UK government borrowing costs rising in response. However, yields have eased as the day progresses. Reeves' decision was not related to the recent turmoil surrounding the prime minister's future. Government sources stress that the move was necessary due to "tough choices" still being made. This is a developing story, with further details expected to emerge in the coming days. The Budget is set to take place on November 26, and the full extent of the chancellor's plans will be revealed then.