i Front Page 30th of October 2025

The PM is preparing to lift the basic rate of income tax to plug a £30bn gap and avoid austerity. A 1p rise could raise £8.2bn. He has not ruled out extending fiscal drag. Critics, led by Kemi Badenoch, say this breaks pledges not to raise taxes on working people.

i Front Page 24th of October 2025

Chancellor Rachel Reeves is considering a 1p rise in the basic rate of income tax to plug a £30bn shortfall, with changes to higher bands also explored. The move risks breaching Labour’s pledge not to raise taxes on working people, amid pressure from higher borrowing costs and recent policy reversals.

i Front Page 23rd of October 2025

Senior Labour figures urge the Chancellor to raise income tax to plug the fiscal gap, potentially netting about £22bn and breaking a manifesto pledge. No10 says its promise on taxes for “working people” stands. Alternatives like freezing thresholds are branded weak as Budget decisions near.

i Front Page 22nd of October 2025

Working-age benefits will rise about 4% next year, tied to September inflation and likely below the state pension uplift. The Treasury faces a squeeze from high borrowing costs and uprating pressures, as the Bank of England warns of a possible credit crunch. Reeves says Brexit is hurting growth more than forecast.