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

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.

- BY CHRIS McCALL

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.

The rate of income tax paid by workers in Scotland is set by the SNP Government but a hike elsewhere in the UK could have a negative impact on public spending

Will Labour raise taxes this month?

We won't know for certain until Rachel Reeves announces the UK Budget on November 26. But the Chancellor took the unusual step yesterday of making a speech in which she failed to recommit to a Labour manifesto pledge not to raise taxes on working people.

Will her tax rises apply north of the Border. Scots earning more than £30,300 already pay more in income tax than workers living in England, Wales and Northern Ireland.