𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Voters have delivered a damning assessment of Rachel Reeves in a new poll published less than a month before her second Budget this November. Reputable pollster YouGov surveyed voters to find out how pessimistic they are about whether Rachel Reeves will hike income tax later this year, and the findings were overwhelming.

Just 2% of voters believe Ms Reeves will “definitely” not raise the basic rate of income tax next month, despite her cast-iron manifesto pledge less than two years ago. A further 8% said they believe Ms Reeves “probably will not” raise income tax, meaning just 10% of voters believe she will not. In stark contrast, a whopping 64% of Britons said they believe Ms Reeves either probably or definitely will hike income tax – including 58% of Labour’s 2024 voters.

Last week, Cabinet Ministers began warning Ms Reeves against the rumoured manifesto pledge break after reports emerged that she and the Treasury are exploring the possibility.

The Treasury is reportedly in active discussions about adding 1p to the basic rate of income tax, which would raise around £8 billion, while costing workers up to £377 a year.

It was said Ms Reeves was eyeing the stunning move as she attempts to find around £30 billion in tax hikes to fill her latest fiscal black hole.

While Labour’s election manifesto provided a cast-iron guarantee not to raise income tax, national insurance or VAT, a Treasury source said, “There is a very live debate going on right now among those planning the budget about how bold we want to be.”

Sir Keir’s spokesman refused to rule out the move, insisting the government will not comment on speculation around tax ahead of the Budget.

They added: “The choice at the Budget is clear: we can go back to the cycle of austerity, debt and decline, or we can continue to invest in Britain’s renewal with an economy that works for working people.

“We will always choose the latter, and as ever it’s for the Chancellor to set out her Budget in parliament next month.”

A minister insisted that Labour “stand by our manifesto”, though did not guarantee that the pledge would hold at the Budget.

The news was panned by Cabinet ministers, however, with a number voicing fear that breaking their manifesto pledge will be panned by voters at a time Labour’s support is already plummeting.

A minister warned that there would have to be a “very, very high threshold” for abandoning the pledge.

Ms Reeves was panned at the last Budget for giving herself just £10 billion in so-called fiscal headroom, the buffer to absorb economic shocks while ensuring the country’s finances still add up.

It’s believed that the Chancellor is determined to give herself a much larger amount of headroom at her November Budget, though this will require additional tax rises or spending cuts.

The Treasury source told the Guardian: “No one wants it to be £10bn again but there is an argument we go much higher, which will mean we don’t have to come back and do this again and might have space to cut taxes before the budget.

“If we go down that route however, it makes it more likely that we have to raise income tax – that is the discussion that is going on at the moment.”