Rachel Reeves is reportedly preparing to scrap a key tax exemption in her upcoming Budget, delivering another financial blow to families.

Rachel Reeves has said that “main taxes on working people” will not rise in the Budget. She gave the reassurance a week before she delivers her first Budget, and the first by a woman Chancellor. But her words left the door open to a raft of other tax rises, many of which could hit London hard.

The chancellor may be forced to increase taxes to reduce the shortfall in government spending and pay for public services