Rachel Reeves urged to reconsider Labour manifesto tax pledgesRachel Reeves is facing more intense pressure to turn her back on Labour manifesto commitments. Chancellor Rachel Reeves has been warned that tweaking small levies and relying on the wealthy to contribute to the state would hinder growth as another prominent report has called for Labour manifesto commitments to be reversed. In a report by the Institute for Government (IfG), Labour strategists were criticised for the party’s “original sin” of making pledges not to raise income tax, national insurance and VAT. Rachel Reeves urged to make better tax decisionsIfG economists said a tendency to rely on “smaller and less salient taxes” – such as a health levy and the insurance premium tax – exacerbated inefficiency in the HMRC’s wider system while also failing to promote a coherent strategy. “Instead, now is the time to commit to tax reform and lay out an agenda on tax that fits with her broader growth objectives.”