For weeks Rachel Reeves set out the idea of an increase in income tax. But now, "treasury sources are saying a rise in the headline rate of income tax will not be in the budget - thresholds will be looked at instead along with hikes to smaller taxes." A big driver of this decision is politics - "the fear of being the first government to put up income tax in 50 years and the fear of blowing up a central part of last year's manifesto". Sky's Rob Powell has the latest. #skynews #uknews #politics #labourparty #government Read more: https://news.sky.com/story/budget-2025-income-tax-u-turn-what-the-hell-just-happened-13470226 SUBSCRIBE to our YouTube channel for more videos: http://www.youtube.com/skynews Follow us on Twitter: https://twitter.com/skynews Like us on Facebook: https://www.facebook.com/skynews Follow us on Instagram: https://www.instagram.com/skynews Follow us on TikTok: https://www.tiktok.com/@skynews For more content go to http://news.sky.com and download our apps: Apple https://itunes.apple.com/gb/app/sky-news/id316391924?mt=8 Android https://play.google.com/store/apps/details?id=com.bskyb.skynews.android&hl=en_GB Sky News Daily podcast is available for free here: https://podfollow.com/skynewsdaily/ To enquire about licensing Sky News content, you can find more information here: https://news.sky.com/info/library-sales