LONDON (Reuters) -British finance minister Rachel Reeves said on Wednesday that leaks about the budget were “not acceptable” after a report last week that she had abandoned plans to raise income tax sent bond prices tumbling.
Reeves is expected to need to raise tens of billions of pounds to stay on track to meet her fiscal targets in the annual budget, and financial markets had seen a rise in income tax as the surest way to achieve this.
“Leaks are not acceptable … The priorities of that budget will be to tackle the cost of living, to get NHS (National Health Service) waiting lists down and to reduce the national debt,” she told broadcasters when asked about the income tax decision, which was confirmed by a government source.
Reeves had appeared to pave the way for an income tax hike, which would have been a breach of the Labour Party’s 2024 election promises, when she gave a rare pre-budget speech earlier this month, saying “each of us must do our bit”.
The change of course spooked investor confidence, with investors and businesses complaining that the confusing messages about the budget were undermining the government’s credibility.
(Reporting by Muvija M; Editing by Kate Holton)
