After weeks signalling an income tax rise, the Chancellor abruptly dropped the plan, citing improved OBR forecasts that reduced the fiscal gap. The reversal unsettled markets and drew claims of a chaotic Budget and dented credibility, while allies say the new outlook made the hike unnecessary.
No 10 accuses Labour MPs of fuelling market jitters after a U-turn on income tax, saying UK borrowing costs rose as investors balked at resistance to welfare cuts. The Chancellor will instead freeze thresholds, drawing more workers into higher bills through fiscal drag.
Rachel Reeves is preparing a new property levy affecting about 2.4m homes after dropping plans to raise income tax. A revaluation would lift bills for higher‑value properties, particularly in the South, with some northern areas paying less. The move aims to raise billions for the public finances.
Reeves will raise £7.5bn by keeping income tax thresholds frozen, ditching a mooted rise in the headline rate to preserve a manifesto pledge. Fiscal drag will move more earners into higher bands and lift bills, with the Treasury saying the measure helps stabilise the public finances.
A former senior politician faces criticism after photos appeared to show him urinating against a wall following drinks. The incident has prompted calls for an apology and raised questions about judgement and standards in public life.
Rachel Reeves will extend the freeze on income tax thresholds, relying on fiscal drag to raise billions. The move is set to push millions into higher bands and pull all state pension recipients into the tax system by 2027–28. A late U-turn on earlier budget plans unsettled markets.
Investors turned against the Reeves Budget after a late U‑turn on an income tax rise sent gilt yields higher. Many questioned fiscal credibility, saying pre‑Budget signals misled them. The shift threatens higher debt‑servicing costs and could complicate the government’s growth plans.
An 82-year-old terminally ill woman urges the Lords to end delays to assisted dying legislation, arguing it would offer choice and dignity with strict safeguards. Supporters cite compassion and oversight, while critics warn of risks to the vulnerable and unintended consequences.
Shona McGarty says she’s joining I’m A Celebrity to confront anxiety and prove to herself she can manage it after years of mental health struggles. She describes the show as a personal challenge and vows not to let anxiety define her.
Rachel Reeves abruptly dropped plans to raise income tax rates after days of signalling hikes, triggering market jitters and higher government borrowing costs. Critics say No 10 forced the reversal to protect the PM amid party unrest, while Treasury sources argue improving data justified the change.