Reeves decides against raising income tax rates

Rachel Reeves reportedly decided against raising income tax rates at the upcoming Budget, reversing earlier considerations due to fears of voter and party backlash. While no confirmation was provided, alternatives such as extending freezes on tax thresholds may be explored to fill a £20bn financial gap. The decision, if confirmed, could impact Labour's manifesto promises and lead to potential challenges in upcoming elections, with other tax measures such as new levies on electric vehicles being considered by the Treasury.