Rachel Reeves will keep Labour’s manifesto pledge and will not raise income tax at this month’s Budget, suggest new reports.

The Chancellor had been expected by some to hike HMRC income tax in the face of a yawning gap in her spending plans, hinting as recently as Monday that the alternative would be “deep cuts” to public investment.

But more recent reports suggest this will not be the case - as there are fears they could anger both voters and backbench Labour MPs.

The decision was communicated to the Office for Budget Responsibility on Wednesday, when the Chancellor submitted a list of “major measures” to be included in her Budget on November 26, according to the Financial Times.

Pound coming under pressure on news Reeves is abandoning income tax rises. As this chart shows, it was one of the only realistic ways to find the money required to fill her budget........

© South Wales Argus