UK Finance Minister Mulls Income Tax Hike Amid Budget Deficit

The British finance minister is weighing options to raise income tax as a strategy to tackle a multibillion-pound deficit. The decision may lead to breaking a Labour manifesto pledge, according to reports by The Guardian. No final decision has been reached, and discussions are ongoing.

The British finance minister is contemplating an increase in income tax to address a significant financial shortfall, as reported by The Guardian. Sources indicate that this consideration is driven by a projected budget deficit exceeding 30 billion pounds, putting pressure on the government to find viable solutions.

The government's contemplation includes potentially raising the basic rate of income tax or adjusting income tax thresholds, although no definitive action has been taken. The ongoing discussions highlight the complexity of addressing such a fiscal challenge while adhering to political commitments.

Despite numerous speculations, official communication from the Treasury on the matter was not immediately available. This potential policy shift has stirred political debate, as it could break the Labour party's key promise not to increase income taxes, complicating the path forward for policymakers.

(With inputs from agencies.)