Rachel Reeves Paves The Way For Budget Tax Rises As Labour's Economic Woes Continue

<div><img src="https://img.huffingtonpost.com/asset/6908d65c180000898a04039f.jpeg?ops=scalefit_630_noupscale" alt="Rachel Reeves is preparing to break Labour's big election manifesto pledge." data-caption="Rachel Reeves is preparing to break Labour's big election manifesto pledge." data-credit-link-back="" data-credit="via Associated Press" />Rachel Reeves is preparing to break Labour's big election manifesto pledge.</div><div class="content-list-component text"><p><a href="https://www.huffingtonpost.co.uk/news/rachel-reeves/">Rachel Reeves</a> is set to pave the way for tax rises in the Budget later this month – amid mounting speculation <a href="https://www.huffingtonpost.co.uk/entry/starmer-wont-say-if-labour-will-increase-taxes-in-budget_uk_6902007fe4b0e49dec62e3c4">she will break Labour’s biggest election promise.</a></p><p>The chancellor will level with voters about “the circumstances we are facing” in a major speech on Tuesday morning.</p><p>She will pledge to “protect our NHS”, cut the national debt and tackle the cost of living when she delivers the Budget on November 26.</p><p>Reeves will also have to find the money to fill a black hole of at least £30 billion in the government’s finances. </p><p>She is understood to be considering hiking income tax by 2p in the pound to raise around £6 billion.</p><p>That is despite Labour’s election manifesto pledge not to put up income tax, VAT or National Insurance.</p><p>Speaking in Downing Street, the chancellor will say: “I will make the choices necessary to deliver strong foundations for our economy – for this year and years to come.</p><p>“It will be a Budget led by this government’s values of fairness and opportunity and focused squarely on the priorities of the British people: protec