Bombshell as chancellor considers 1% income tax hike

As the Treasury stays tight lipped about potential tax rises in the Budget, officials are busy briefing behind the scenes about a 1p increase in income tax, potentially breaking Labour’s big three tax pledge

Despite pledges in the Labour party manifesto last year not to raise the big three taxes of income tax, national insurance and VAT, reports are now emerging that the chancellor, Rachel Reeves, is looking at a possible 1% rise in the basic rate of income tax, which would see a 21% base rate.

Treasury officials have briefed the Guardian newspaper that the chancellor is considering the option seriously and it is being discussed by the budget committee in HMT.

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