DEVELOPING: Rachel Reeves Faces Fire Over Income Tax Rise Plans

Breaking News: Rachel Reeves Abandons Income Tax Rise Plans Chancellor Rachel Reeves has made a surprise U-turn on plans to raise income tax rates by 2p, a move that would have broken the Labour Party's manifesto pledges. The decision comes after the Office for Budget Responsibility (OBR) revised its projections, reducing the projected gap in public finances. The "2 up, 2 down" plan, which would have raised income tax rates by 2p while cutting National Insurance by 2p, was sent to the OBR earlier this month to be costed. However, the OBR's revised assessments have increased the projected strength of wages and tax receipts, offsetting several billion pounds of the gap. This decision marks a significant shift in the Labour Party's economic strategy, which had been under intense scrutiny in recent weeks. The move is expected to have a significant impact on the party's plans to address the UK's public finances. The exact implications of this decision are still unclear, and it remains to be seen how the Labour Party will fill the remaining gap in public finances. The OBR is expected to provide further analysis in the coming days. This is a developing story, and we will continue to provide updates as more information becomes available.