The UK government has decided to abandon its plan to increase income tax rates ahead of the upcoming 26 November Budget. This move comes as Prime Minister Keir Starmer and Chancellor Rachel Reeves seek to avoid voter backlash and manage internal party tensions. Instead, the Treasury is considering alternative fiscal measures, such as adjusting or freezing tax thresholds, to address a funding gap that could reach £30 billion. The decision has impacted financial markets, with the British pound weakening as investors reassess the country's fiscal strategy. Economic advisers have suggested that up to £50 billion in measures may be necessary to stabilize public finances.