Pound falls and UK borrowing costs rise as Reeves ditches plans for income tax hike – business live

Jitters over the UK's autumn budget grow as chancellor Rachel Reeves abandons plans to raise income tax on 26 November

The pound is now trading down just 0.24% versus the dollar at around 1.3159.

The 10-year gilt yield is now up 0.06 percentage points at 4.49%

Chancellor of the Exchequer Rachel Reeves has been able to drop plans to raise income taxes because she received an improved fiscal forecast from the UK's budget watchdog, people familiar with the matter said.

The latest update from the Office for Budget Responsibility moved in a significantly more favorable direction due to the strength of government receipts and stronger wage performance, the people said, asking not to be named discussing sensitive matters.