DEVELOPING: Rachel Reeves Abandons Income Tax Hike Plans in Surprise Budget Shift

Breaking News: Rachel Reeves Abandons Income Tax Hike Plans in Surprise Budget Shift Chancellor Rachel Reeves has made a sudden U-turn on income tax rates, deciding against raising them in the upcoming Budget later this month. This move comes after weeks of speculation that Reeves would increase tax 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 various rates kick in. Other taxes could also be raised, with government sources stressing that "tough choices" still need to be made. Reeves had previously given strong indications that she would increase income tax rates, a move that would have had significant implications for millions of taxpayers. The decision to abandon these plans is a surprise and has sent shockwaves through the financial markets. The exact details of the Budget are still unclear, but sources suggest that Reeves will focus on other areas of taxation. The Office for Budget Responsibility (OBR) will submit its forecasts to the chancellor in the coming days, which will shape the final Budget plans. This is a developing story, and we will bring you further updates as more information becomes available.