The Chancellor has abandoned plans to hike income tax at the Budget because of improved economic forecasting.Rachel Reeves had been expected to hike income tax in the face of a yawning gap in her spending plans, hinting as recently as Monday that the alternative would be "deep cuts" to public investment.

The Chancellor has abandoned plans to hike income tax at the Budget because of improved economic forecasting.Rachel Reeves had been expected to hike income tax in the face of a yawning gap in her spending plans, hinting as recently as Monday that the alternative would be "deep cuts" to public investment.