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    Home > Headlines > UK's Reeves does not plan to raise income tax, government source says
    Headlines

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

    Published by Global Banking & Finance Review®

    Posted on November 14, 2025

    1 min read

    Last updated: January 21, 2026

    UK's Reeves does not plan to raise income tax, government source says - Headlines news and analysis from Global Banking & Finance Review
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    Tags:UK economyIncome taxfinancial managementGovernment funding

    Quick Summary

    UK Finance Minister Rachel Reeves will not raise income tax in the upcoming budget, sticking to Labour's promise due to a better fiscal outlook.

    Table of Contents

    • UK Budget Overview
    • Fiscal Outlook Improvement
    • Labour's Pre-Election Promises

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

    UK Budget Overview

    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.

    Fiscal Outlook Improvement

    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.

    Labour's Pre-Election Promises

    (Reporting by Andrew MacAskill, writing by David Milliken)

    Key Takeaways

    • •Rachel Reeves will not raise UK income tax.
    • •The decision aligns with Labour's pre-election promises.
    • •An improved fiscal outlook influenced the decision.
    • •The budget announcement is set for November 26.
    • •The Financial Times reported the policy change.

    Frequently Asked Questions about UK's Reeves does not plan to raise income tax, government source says

    1What is the main topic?

    The main topic is Rachel Reeves' decision not to raise UK income tax in the upcoming budget.

    2Why is there no income tax increase?

    The decision is due to an improved fiscal outlook and to maintain Labour's pre-election promises.

    3When is the budget announcement?

    The budget announcement is scheduled for November 26.

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