CBI boss calls for Rachel Reeves to tear up Labour’s manifesto pledge on tax

Rain Newton-Smith tells chancellor ‘the time for tinkering is over’ and revisit promise not to raise taxes on working people

• CBI chief: ‘It’s time for Reeves to reconsider Labour’s manifesto promises on tax’

The boss of the Confederation of British Industry has suggested the chancellor should tear up Labour’s manifesto pledge not to raise taxes on working people, in a significant intervention before the budget.

Rachel Reeves is widely expected to present a package of tax rises in her 26 November statement to offset deteriorating economic forecasts. However, the chancellor has been hamstrung by Labour’s promise not to increase the three main revenue-raisers for the Treasury: income tax, national insurance and VAT.