𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Andrew Neil blasted Labour for “yet another shambles” after reports Rachel Reeves is abandoning plans to hike income tax at her Budget. The Chancellor was expected to break Labour’s manifesto pledge not to raise income tax at her statement on November 26 to plug a black hole in the public finances.

But she is said to have U-turned amid fears of a backlash from Labour backbenchers and voters, as Sir Keir Starmer faces questions over his leadership. In a post on X, the veteran broadcaster said: “Having rolled the pitch for income tax rises, Chancellor Reeves has now bottled it, under pressure from 10 Downing Street, which fears Keir Starmer could not survive such a major manifesto breach.

“But the debt markets are not keen on a smorgasbord of small tax rises, which never deliver the predicted revenues.

“So gilt yields are already surging across the curve at the market open, with the yield on the 30-year bond up 14 basis points. Yields on bonds of all maturities are up more than 10 basis points. It’s yet another shambles.”

Speculation that the Chancellor has scrapped plans to raise income tax sent Britain’s long-term borrowing costs soaring amid fears over unfunded spending pledges.

But a Cabinet minister this morning insisted that Ms Reeves will not “play fast and loose with people’s money”.

Culture Secretary Lisa Nandy told BBC Breakfast: “What I can tell you is as somebody who sits around that Cabinet table, who has discussions with Rachel and has known her for a long time, is that she won’t play fast and loose with people’s money.

“She does take her promises seriously, and she will do everything that she can to make sure that those choices are the fairest possible choices.”