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Reeves weighing income tax rise to tackle deficit, The Guardian reports

Rachel Reeves faces pressure to raise income tax to fill a £30 billion shortfall amid economic challenges despite Labour's manifesto pledge against tax rises on working people.

  • Rachel Reeves is considering breaking a manifesto pledge with an income tax rise to fill a £30bn gap, according to The Guardian.
  • Raising income tax may be the only way to make sure she raises enough money never to have to come back for tax rises again, according to Whitehall sources.
  • Adding 1p to the basic rate of income tax could generate more than £8bn for the Treasury, but would likely add to concerns about the cost of living at a time when bills are sky high, The Guardian reports.
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iNews broke the news in London, United Kingdom on Wednesday, October 22, 2025.
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