Labour civil war continues as Rachel Reeves is 'fighting for her political survival'

The Labour civil war is deepening ahead of the November Budget as Rachel Reeves' backbenchers admit she has no "long-term strategy". Labour MPs are publicly warning the Chancellor not to break the key manifesto promise of not raising income tax, as she has suggested she will do. Parliamentarians have ridiculed Ms Reeves by claiming her annual fiscal statement will "go down like a bucket of sick" and she is "fighting for her political survival".

On Friday, Ms Reeves reportedly told the Office for Budget Responsibility (OBR) that she is considering a 2p increase to income tax, which will be offset by a 2p cut to National Insurance (NI), because their total tax bill would remain roughly the same. But, pensioners and self-employed people, who usually do not pay National Insurance, would pay more. In response, a number of prominent Labour MPs have expressed their concern over the Government breaking a key manifesto promise.

New deputy leader Lucy Powell insisted the Chancellor must stick to the pledge in the Budget on November 26. Speaking to Matt Chorley on BBC Radio 5 Live, Ms Powell said: "We should be following through on our manifesto, of course. There's no question about that."

Labour MP Clive Lewis added that "it is somewhat concerning that we have a Chancellor who has for the last month been permanently rolling the pitch" to see what Brits find "acceptable".

"It makes the situation less stable," he told The Telegraph.

"She is a Chancellor without a long-term economic strategy, who is trying to please as many people as possible and fighting for [her] political survival. This does not inspire confidence."

Similarly, Rachael Maskell, who recently had her whip restored, said raising income tax would lead to "working people paying more".

"I do think she will lose a lot of confidence and trust if she goes against what she has explicitly said [in the manifesto]," she said. "There will be real questions about why - when there are all these options available to her."

Graham Stringer has also questioned the Chancellor's longevity in her post if she "breaks a pledge that was fundamental to the Labour party". The Labour MP added that there is a "feeling of despair" and they should stand by their commitments to the public.

Treasury sources told The Telegraph that there would be "rewards" for the "necessary choices" in the Budget.

"Working people cannot afford for us to put stability at risk," they added.