The British Chancellor of the Exchequer, Rishi Sunak, plans to increase income tax in the budget.

According to reports from the UK's Financial Times, UK Chancellor Rishi Sunak has informed the UK's budget watchdog that she will announce "major measures" in the budget, including raising personal income tax. This confirms previous reports. Sunak is expected to raise hundreds of billions of pounds in taxes in the budget on November 26th to ensure that her fiscal goals are met. This is a key issue for bond investors. Reports state that while Sunak may still change plans, including the proposal in the formal documents submitted to the Office for Budget Responsibility indicates that the proposal is being seriously considered. A spokesperson for Sunak's office stated that she has outlined the "background to the budget and recognizes the global and long-term economic challenges." The spokesperson added, "The budget will continue to lay a solid foundation for securing the future of the UK and its people." Reports suggest that Sunak is considering raising income tax by two pence while lowering national insurance contributions by two pence, aiming to shift the tax burden from working class individuals to pensioners and landlords.