Rachel Reeves makes sudden income tax U-turn in desperate bid not to break manifesto
**Rachel Reeves Makes Sudden Income Tax U-Turn in Desperate Bid Not to Break Manifesto**
Sir Keir Starmer and Rachel Reeves have reportedly shelved their contentious proposal to increase income tax rates. In a surprising shift, they now intend to push many workers into higher tax brackets instead. This about-face comes amid mounting pressure and the need to avoid breaking their election mandate.
The Labour leadership appears to be reacting to the backlash from both the public and their supporters. Critics have pointed out that moving people into higher tax brackets, rather than simply raising rates across the board, constitutes a failure to deliver on promised reforms. As fiscal challenges loom, the party is scrambling to present a more palatable approach without losing sight of its core platform.
Reeves faces additional criticism for her stewardship of economic policies, especially in light of rising discontent regarding taxation and living costs. One observer noted, "But one retreat doesn't fix a Budget built on broken promises. Reeves must guarantee no new taxes on work, businesses, homes or pensions - and she should go further by abolishing stamp duty."
The implications of these changes extend beyond Labour's internal dynamics. A source close to the Chancellor emphasized, "This is a pro-business Government which is building on the progress we've already made to strengthen the UK's position as an attractive investment prospect for the best and the brightest across the world. Introducing an exit charge would risk signalling that the UK is less welcoming to entrepreneurs and global talent, and that's not something the Chancellor wants to do."
Such statements highlight the ongoing discussions surrounding the balance between tax policy and economic growth, underscoring the contentious nature of Labour's recent policy shifts.