LONDON (Reuters) -The British finance minister is considering raising income tax in next month's budget to help reduce a multibillion-pound deficit, The Guardian reported on Thursday, citing sources
UK Finance Minister Considers Income Tax Hike to Address Deficit
Potential Income Tax Changes in the Upcoming Budget
LONDON (Reuters) -The British finance minister is considering raising income tax in next month's budget to help reduce a multibillion-pound deficit, The Guardian reported on Thursday, citing sources familiar with the matter.
Current Financial Situation and Deficit
The discussions come as Reeves faces an estimated shortfall of more than 30 billion pounds ($40.26 billion), the newspaper reported. It said Reeves is in active talks over whether to break one of Labour's key manifesto pledges, which include not to raise income tax.
Options Under Consideration
The Guardian said officials were weighing options including an increase in the basic rate of income tax or changes to thresholds, though no final decision has been made.
Official Responses and Next Steps
A Treasury spokesperson did not immediately respond to a Reuters request for comment.
(Reporting by Sam Tabahriti, Editing by Franklin Paul)
