Reeves accused of ‘rattling the markets’ after income tax U-turn pushes up borrowing costs – UK politics live
A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the chancellorThe Treasury has now triggered speculation that, to compensate for not rising the basic rate of income tax, it will have to bring down the threshold at which people start paying higher rates.In its story the Financial Times says:The chancellor is now exploring alternative ways to fill a fiscal hole estimated by economists to be up to £30bn.One option to raise revenue would involve cutting the thresholds at which people pay different rates of income tax, while leaving the headline basic and higher rates of the tax unchanged.Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.This isn’t government, this is chaos. Labour give the impression of a party that has completely lost control - playing a dangerous game with people’s finances so that their prime minister can try to cling to power. But everyone now knows the clock is ticking until he is dumped from Downing Street. His last act should not be to play fast and loose with the public finances - they’ve already more than paid the price for the constant chaos and crisis that passes for politics at Westminster. Continue reading...
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A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the chancellor
The Treasury has now triggered speculation that, to compensate for not rising the basic rate of income tax, it will have to bring down the threshold at which people start paying higher rates.
In its story the Financial Times says:
The chancellor is now exploring alternative ways to fill a fiscal hole estimated by economists to be up to £30bn.
One option to raise revenue would involve cutting the thresholds at which people pay different rates of income tax, while leaving the headline basic and higher rates of the tax unchanged.
Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.
This isn’t government, this is chaos.
Labour give the impression of a party that has completely lost control - playing a dangerous game with people’s finances so that their prime minister can try to cling to power.
But everyone now knows the clock is ticking until he is dumped from Downing Street. His last act should not be to play fast and loose with the public finances - they’ve already more than paid the price for the constant chaos and crisis that passes for politics at Westminster.
