Published by Michele Maatouk on 24th October 2025
(Sharecast News) - Rachel Reeves is considering raising income tax at next month's budget to help reduce a multibillion pound shortfall, sources have told the Guardian. The chancellor is in active discussions over breaking one of her party's main manifesto pledges as she looks for ways to clear an estimated shortfall of more than £30bn, according to three sources close to the budget process. Some advisers in the Treasury and No 10 believe that raising income tax may be the only way to make sure she raises enough money never to have to come back for tax rises again in this parliament. - Guardian