Reeves eyes up income tax hike to fill black hole

RACHEL Reeves could be ready to break Labour’s manifesto pledge by raising income tax in November's Budget.

- By Katie Harris Senior Political Correspondent

The Chancellor may abandon the promise not to raise levies on “working people” as she looks to fill a black hole of up to £50billion.

Some advisers in the Treasury and No10 believe that increasing income tax is the only way to raise enough money to ensure she does not have to come back for more during this Parliament.

But Ms Reeves is understood to fear a backlash after her National Insurance raid on employers last year.