UK’s Reeves abandons plan to raise I-T rates

British Finance Minister Rachel Reeves (pictured) has no plans to raise income tax rates in this month’s Budget due to improved fiscal forecasts, a source said, following a surge in borrowing costs earlier in the day on reports she had backtracked on tax hikes.

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Reeves is expected to need to raise tens of billions of poundstostay ontrack for her fiscal targets, and her recent comment that “we will all have to contribute” was seen as paving the way for the government to break its main election pledge and hike incometax rates.