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UK Government Considers First Income Tax Hike in 50 Years

11/4/2025

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Summary

Story summary

The UK government faces pressure to raise income tax for the first time in 50 years.
A potential 2p rise is under consideration.
Chancellor Rachel Reeves could breach her manifesto promise not to raise income tax.
Experts warn reforms to National Insurance and capital gains tax could provoke public backlash.
The changes would affect basic-rate taxpayers already strained by inflation.

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Story summary

The UK government faces pressure to raise income tax for the first time in 50 years.
A potential 2p rise is under consideration.
Chancellor Rachel Reeves could breach her manifesto promise not to raise income tax.
Experts warn reforms to National Insurance and capital gains tax could provoke public backlash.
The changes would affect basic-rate taxpayers already strained by inflation.