Reeves must scrap manifesto tax pledges, think tank says amid 30bn Budget black hole

"From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging."

"Rachel Reeves needs to row back on her manifesto pledge not to raise income tax, national insurance or VAT, a leading think tank has said, as the chancellor seeks to fill a 30bn black hole at the Budget. The chancellor should reject the path of least resistance and consider rowing back on her rash commitment not to raise the three main taxes at the Budget, the Institute for Government (IfG) said, arguing Labour's unrealistic approach to tax has left Ms Reeves reaching for piecemeal changes."

"It comes amid a growing expectation that the Treasury will have to increase taxes by as much as 30bn in the upcoming Budget, as a result of sluggish productivity, government U-turns and higher than expected interest payments. Higher tax and spending cuts are set to drag on UK growth next year (PA) It is understood that Treasury officials currently believe the Office for Budget Responsibility will lower its forecasts for productivity growth, which would mean an extra 20bn worth of tax rises would be required."

The Independent operates without paywalls and solicits donations to fund on-the-ground reporting, documentaries like 'The A Word', and investigations into issues such as Elon Musk's pro-Trump PAC. The outlet stresses sending journalists to speak to both sides and parsing facts from messaging across reproductive rights, climate change and Big Tech. The Institute for Government urges Chancellor Rachel Reeves to reconsider her pledge not to raise income tax, national insurance or VAT to fill a projected 30bn Budget shortfall. Treasury officials expect the Office for Budget Responsibility to lower productivity forecasts, potentially requiring an extra 20bn in tax rises, while reversing welfare reforms could add around 5bn.

Read at www.independent.co.uk