£1BN BUDGET BOMBSHELL

Experts warn raising income tax down south would mean less for Scottish Government

- CHRIS MCCALL

INCOME tax rises in England expected to be announced by Rachel Reeves could lead to public spending in Scotland being slashed by £1billion, experts have warned.

The UK Chancellor gave her clearest indication yet in a speech yesterday that she will use the UK Budget on November 26 to rip up Labour's manifesto pledge not to hike taxes for working people.

Reeves pointedly declined to recommit to a previous promise not to raise income tax, national insurance or VAT, instead declaring: "We will all have to contribute."

She blamed global problems including the tariff war triggered by Donald Trump and domestic issues including the Budget watchdog's expected downgrade of economic productivity for the "hard choices" she will make.