Rachel Reeves has submitted plans to increase income tax to the Office for Budget Responsibility for evaluation, the Times reports. The OBR will assess the impact of the measures, which include the Chancellor’s economic growth plans, before informing the Treasury of its conclusions on Monday. The Chancellor is mulling over a 2p rise in income tax and a 2p cut in national insurance, a move economists believe could raise more than £6bn a year. Reeves is reportedly looking to ensure the wealthiest contribute more, by potentially limiting the national insurance cut to earnings below £50,270. She is also expected to extend the freeze in income tax thresholds for another year until 2029-30. Separately, Lucy Powell, Labour's new deputy leader, insists the party must uphold its manifesto pledge not to raise taxes on working people. Asked whether it would be acceptable to break this promise, Powell told the BBC: "We should be following through on our manifesto, of course. There's no question about that."
