Rachel Reeves has told the Budget watchdog that she plans to increase income tax, according to Steven Swinford from The Times.
Reeves informed the OBR that personal tax measures will be included in her budget on November 26 but the report notes that the plans could still be reversed.
"The chancellor is considering a 2p rise in income tax and a 2p cut in national insurance," the report says.
It will be offset somewhat as "she is considering limiting the national insurance cut to earnings below £50,270, reducing the rate from 8 per cent to 6 per cent," according to the report.
