DEVELOPING: Rachel Reeves Abruptly Drops Income Tax Hike Plans in Budget Shock

Breaking News: Rachel Reeves Drops Income Tax Hike Plans in Budget Shock Chancellor Rachel Reeves has abruptly decided against raising income tax rates in the upcoming Budget, a move that breaks from Labour's election promise. This decision comes after better-than-expected economic forecasts were revealed. Reeves had previously indicated a strong likelihood of increasing income tax rates, but has now opted against this step. Instead, the chancellor may choose to freeze or lower income tax thresholds, the salary levels at which various rates kick in. Other taxes could also be raised. The decision was made after the Office for Budget Responsibility (OBR) submitted its forecasts on the chancellor's plans. Government sources stress that the move was not related to the recent turmoil surrounding the prime minister's future. The Budget is set to take place later this month, and the exact details of the chancellor's plans are still unclear. This is a developing story, and further updates will be provided as more information becomes available. This is a developing story. Please check back for updates.