Reeves Scraps Tax Hike After £10bn Boost

Chancellor Rachel Reeves has abandoned plans to raise income tax after a surprise £10 billion improvement in the nation’s finances.

The UK’s budget deficit has narrowed from £30 billion to £20 billion following updated forecasts from the Office for Budget Responsibility.

With markets calm and borrowing costs easing, Reeves now aims to keep a £15 billion buffer instead of angering voters with higher rates.

Sources say she may still raise revenue by freezing tax thresholds and introducing selective levies.

A full rethink on taxing wealthy expats and limited liability partnerships is also being considered ahead of the next budget.



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