UK’s Reeves does not plan to raise income tax, government source says

LONDON (Reuters) -British finance minister Rachel Reeves does not plan to raise income tax at her upcoming annual budget on November 26 due to an improved fiscal outlook, a government source said on Friday.

Reeves had been widely expected to break Labour’s pre-election promise not to raise the rate of income tax to fill a budget shortfall, but late on Thursday the Financial Times reported she had scrapped these plans.

(Reporting by Andrew MacAskill, writing by David Milliken)