Reeves gives strongest hint tax pledges will be broken

Rachel Reeves has given her biggest hint yet that the government could break its manifesto promises on tax at the Budget.

- CAITLIN DOHERTY

The chancellor has said that it would be “possible” for ministers to stick with their election pledges, but warned that doing so would mean “deep cuts” in other areas of spending.

Speculation has been rampant in recent days that the chancellor is preparing to increase income tax in the Budget at the end of this month as she looks to balance the country’s books.

Labour’s manifesto for the 2024 general election campaign pledged that the party would not raise income tax, VAT or national insurance.

In the same interview yesterday, Ms Reeves also said she does not think it is right that children are “penalised” for being part of large families, suggesting she is open to ending the two-child benefit cap.