Chancellor Rachel Reeves is facing a mounting rebellion from within her own cabinet as senior ministers voice strong opposition to her proposed income tax reforms, The Independent can reveal.
The simmering tensions threaten to derail Labour's first major budget and expose deep divisions at the highest levels of government just weeks after taking power.
Ministerial Revolt Brewing
Multiple cabinet members have privately expressed serious concerns about the Chancellor's tax plans, with some threatening to openly challenge the proposals if they proceed in their current form. The backlash represents the first significant test of party unity since Labour's landslide election victory.
Sources close to several senior ministers indicate that the proposed changes to income tax could disproportionately affect middle-income earners, creating political vulnerability for a government that campaigned on protecting working families.
Budget Uncertainty Looms
The internal conflict comes at a critical juncture as Treasury officials work to finalise budget details expected to be announced in the coming months. The Chancellor's office had been hoping to use the first Labour budget in over a decade to make a bold statement about the government's economic direction.
However, the cabinet resistance has forced a reconsideration of strategy, with insiders suggesting Reeves may need to significantly water down her proposals to maintain government cohesion.
Political Fallout Feared
Political analysts warn that a public split within the cabinet so early in the parliamentary term could damage the government's credibility and embolden opposition parties. The Conservative Party has already begun positioning itself to capitalise on any signs of Labour division.
The situation places Prime Minister Keir Starmer in a difficult position, forced to balance support for his Chancellor against maintaining unity within his top team.
As behind-the-scenes negotiations continue, all eyes remain on whether Rachel Reeves can navigate this first major political storm or if the income tax reforms will become the first casualty of internal Labour politics.
