For weeks Rachel Reeves set out the idea of an increase in income tax.
But now, "treasury sources are saying a rise in the headline rate of income tax will not be in the budget – thresholds will be looked at instead along with hikes to smaller taxes."
A big driver of this decision is politics – "the fear of being the first government to put up income tax in 50 years and the fear of blowing up a central part of last year’s manifesto".
Sky’s Rob Powell has the latest.
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Read more: https://news.sky.com/story/budget-2025-income-tax-u-turn-what-the-hell-just-happened-13470226
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