The government has announced South Western Railway’s services will be the first to transfer into public ownership next year, with ministers saying the move paved the way for a “major shake-up” of Britain’s railways.

Concerns are growing Labour could be planning a new tax raid after Rachel Reeves refused to commit to her recent pledge to not raise taxes further. The chancellor was pressed on the issue in the Commons by shadow chancellor Mel Stride following her recent promise to business leaders at the CBI conference last week.

Rachel Reeves has failed to repeat her pledge that there will be no more borrowing or tax rises following her first Budget. The Chancellor last week sought to reassure business leaders that the £40 billion tax hikes announced in October would not be repeated, saying: "I'm really clear. I'm not coming back with more borrowing or more taxes."

Fears are growing that Labour could be planning a new tax raid after Rachel Reeves refused to repeat her recent pledge not to repeat her £40bn Budget hikes. The chancellor was pressed on the issue in the Commons by shadow chancellor Mel Stride, and again at a conference in the North of England, over her promise last week to the CBI conference.

The chancellor has said she will not need to raise taxes to "top up" public spending, after facing pressure to spell out her future tax plans. Rachel Reeves made headlines last week by telling a business conference she would not be "coming back" with tax hikes in the coming years.

The chancellor increased taxes by £40bn in October, with the lion's share funded by a £25bn rise in employers' National Insurance.

Reeves insists public services will have to ‘live within their means’ - The Chancellor suggested the risk of economic shocks meant she could not guarantee there would be no further tax rises.

Rachel Reeves has appeared to drop her pledge to not “come back for more tax” from businesses after refusing four times to repeat the vow. Last week, the Chancellor told business leaders she would not need to increase taxes further after raising employer National Insurance contributions by £25 billion at the Budget.