• Chancellor Rachel Reeves is under pressure to fill a £50bn hole in the public finacnces, with a 2p increase in the basic income tax rate likely despite Labour’s manifesto pledge not to raise levies on “working people”
• Leading think tank NIESR warns Reeves is on track to miss fiscal targets by £38bn, saying income tax rises are the least damaging option compared to VAT or corporation tax hikes
• A 2p income tax increase could raise £20bn but slightly slow economic growth, as Reeves faces mounting political backlash ahead of the November 26 Budget