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Chancellor Rachel Reeves has ruled out raising income tax rates in the upcoming Budget, honouring Labour's manifesto pledge.
Although she had previously signalled possible increases to fill a £30bn fiscal gap, improved economic forecasts have narrowed that gap to around £20bn.
Instead, Reeves may extend the current freeze on tax thresholds - raising revenue without technically breaking promises, though it would increase tax bills for many.
Critics say the government is in disarray, while supporters argue avoiding direct tax hikes protects working people.
The decision raises questions about how Reeves will meet spending commitments without new tax rises.
Is this the right move for the Chancellor to make?
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