Copyright independent
Rachel Reeves, the Chancellor, is under pressure to break Labour's manifesto pledge by increasing income tax for high earners. This potential tax raid aims to fill a Budget black hole estimated to be between £30bn and £40bn. Discussions include raising the 45p top rate of income tax or lowering its threshold from £125,140 to around £100,000. Experts warn that increasing the top rate may not generate substantial revenue and could create complex, high effective tax rates for some earners. Other tax changes being considered include a gambling tax and adjustments to capital gains taxes, amidst internal cabinet disagreements.
