In a surprising turn of events, Rachel Reeves, the Chancellor of the Exchequer, announced a major reversal of plans to raise income tax rates in the upcoming budget. The decision comes after intense backlash from the public and opposition parties, as well as concerns from industry experts.

Reeves initially proposed the increase as a way to generate additional revenue for government spending, but faced criticism for potentially burdening taxpayers with higher taxes amid economic uncertainty. The move to abandon the tax hike marks a significant shift in the government's fiscal policy.

The decision is expected to have a major impact on the upcoming budget and government revenue projections. It remains to be seen how Reeves will address the gap in funding left by the scrapped tax increase, and what alternative measures will be proposed to support government spending priorities.

The announcement comes amidst a broader debate on tax policy and economic management, with implications for future budget decisions and political dynamics. Stay tuned for more updates on this developing story.