Reeves expected to freeze income tax thresholds to raise funds after welfare U-turn

Government's concessions over welfare cuts leave chancellor with a growing hole in her budget

Rachel Reeves is expected to extend a freeze on income tax thresholds to raise fresh funds after the government's U-turn on welfare cuts left her with a growing budget hole.

The chancellor was already facing pressure to backtrack on pledges not to increase taxes further as she attempted to fix public services and grow the economy while meeting her fiscal rules.