Is history about to repeat itself, 50 years after the last time a Labour chancellor raised the basic rate of income tax? Now that Rachel Reeves has dumped Labour's election pledge not to increase national insurance, income tax or VAT, she's tipped to raise income tax by 2p on 26 November. Politics Hub: Latest updates and analysis Back in 1975, Labour's chancellor, the old bruiser Denis Healey, did just that, though back then the basic rate of income tax was 33%, and he increased it to 35%.