DEVELOPING: Rachel Reeves Abruptly Halts Income Tax Rate Hike Amid Optimistic Economic Projections

Breaking News: Rachel Reeves Halts Income Tax Rate Hike Amid Optimistic Economic Projections Rachel Reeves, the UK Chancellor, has abruptly decided against raising income tax rates in the upcoming Budget, according to government sources. This move comes after receiving better-than-expected economic forecasts, which suggest a 10 billion pound gap in the public finances is smaller than previously thought. The decision marks a significant U-turn from Reeves' previous indications that she would increase the tax rate, breaking Labour's election promise not to raise income tax rates. Instead, Reeves is now considering freezing or lowering income tax thresholds, the salary levels at which tax rates kick in. Reeves' decision is a response to improved economic projections, which have reduced the pressure on the government to increase taxes. The move is not related to the recent turbulence surrounding the Prime Minister's future. Government sources stress that the decision was not taken lightly and that "tough choices" still need to be made. Other taxes could be raised as part of the Budget, but the specifics are yet to be confirmed. This is a developing story, and further details are expected to emerge in the coming hours and days.