Business
Reeves signals manifesto-busting Budget will hike taxes
Rachel Reeves has all but admitted Labour’s manifesto pledge not to hike income tax will be ditched in her Budget.
The Chancellor said sticking to the election promise not to increase taxes for working people could only be met with “deep cuts” to public investment, which could derail hopes of future economic growth.
Sir Keir Starmer’s landslide election win was built on a promise not to increase income tax, employees’ national insurance or VAT but Ms Reeves looks set to break that pledge.
She said instability around the world fuelled by Donald Trump’s tariffs and the war in Ukraine, along with an unexpected downgrade in economic growth forecasts from the budget watchdog, would force her to take difficult decisions in the November 26 Budget.
She told BBC Radio 5 Live: “I will set out the choices in the Budget.
“It would, of course be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending and the reason why our productivity and our growth has been so poor these last few years is because governments have always taken the easy option to cut investment – in rail and road projects, in energy projects, in digital infrastructure.
“And as a result, we’ve never managed to get our productivity back to where it was before the financial crisis.
“So we’ve always got choices to make, and what I promised during the election campaign was to bring stability back to our economy, and what I can promise now is I will always do what I think is right for our country.”
She added: “We’re still going through the process at the moment of preparing the Budget measures.
“So those final decisions haven’t been taken yet, but as I take those measures, I will do what I believe is right for our country, and sometimes that means not always making the easy decisions, but the decisions that I think are in our national interest.”
Ms Reeves said the forecasts for economic growth would be downgraded because of the Office for Budget Responsibility’s revisions of the UK’s productivity.
She told BBC Radio 5 Live: “I have been really clear that we are looking at both taxes and spending as part of this Budget, a couple of things have influenced the budget situation this year.
“The first is that the independent forecaster, the Office for Budget Responsibility, has done a review of how productive the economy is.
“They’ll be very clear this is based on our productivity performance of the last few years under the last government, but they’re using it to make projections about productivity in the future, and that does mean lower growth, and we have to accommodate that, because we have to live within our means.”
Ongoing “conflicts and disruptions to trade” were hitting growth around the world, she added.
But she also acknowledged her decision to hike taxes in her first budget, including an increase in employers’ national insurance contributions, had also had an impact.
She said: “I recognise that those decisions to increase taxes in the budget last year would have an impact on business and on the wealthiest whose taxes we increased.
“What I would say is doing nothing wasn’t an option.”
She said the measures had helped fund a drop in NHS waiting lists and had also provided the stability to the public finances which had allowed interest rates to fall.
The Chancellor indicated she will scrap the two-child benefit cap, saying there were “costs to our economy in allowing child poverty to go unchecked”.
She added: “In the end, a child should not be penalised because their parents don’t have very much money.”
Labour’s deputy leader Lucy Powell has warned that breaking the pledge not to raise income tax, national insurance or VAT would damage “trust in politics” and “we should be following through on our manifesto, of course”.
Ms Reeves said: “I think Lucy has been very clear since that interview that she stands alongside me and the decisions that I’ll need to make in that Budget.”
Shadow chancellor Sir Mel Stride said: “Rachel Reeves is trying to pull the wool over your eyes. Having already raised taxes by £40 billion she said she had wiped the slate clean, she wouldn’t be coming back for more and it was now on her.
“Every time the numbers don’t add up, Reeves blames someone else. But this is about choices – and the Chancellor is making all the wrong choices.”
Last Updated:
Foreign Portfolio Investors put Rs 19,675 crore into Indian equities in early February, ending three months of selling amid global cues and a US-India trade pact.
US-India trade deal hopes lift FPI inflows to Rs 19,675 cr in early Feb
Foreign Portfolio Investors Reverse Trend With Rs 19,675 Crore February Buying: Foreign Portfolio Investors (FPIs) made a notable comeback in early February, infusing Rs 19,675 crore into Indian equities during the first half of the month, aided by improving global conditions and the US-India trade agreement.
This marks a clear shift after three consecutive months of net selling. Depository data shows FPIs withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November.
Even with the renewed buying in February, the broader trend for 2025 remains negative. So far this year, foreign investors have pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, making it one of the weakest periods for overseas inflows in recent times. Currency volatility, global trade tensions, concerns over potential US tariffs, and elevated valuations had weighed heavily on flows earlier.
Global Cues And Domestic Stability Support Recovery
Himanshu Srivastava, Principal Manager–Research at Morningstar Investment Research India, as quoted by PTI, said the latest inflows were largely driven by easing global macro pressures. Softer US inflation data improved expectations around the interest rate cycle, helping stabilise bond yields and the US dollar. This, in turn, enhanced investor appetite for emerging markets such as India.
On the domestic front, stable inflation, resilient macro indicators, and corporate earnings largely in line with expectations strengthened confidence in India’s economic trajectory, he noted.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, also attributed the renewed interest to the US-India trade pact, the growth-oriented Union Budget 2026, easing global trade uncertainties, and steady domestic interest rates.
Volatility Persists Despite Net Buying Days
FPIs were net buyers in seven out of eleven trading sessions in February up to the 13th, turning sellers on four occasions. However, cumulative data indicates a net equity outflow of ₹1,374 crore so far this month.
The divergence was largely due to a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty dropped 336 points. The period also witnessed substantial selling in IT stocks amid the so-called “Anthropic shock.” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said as quoted by PTI, foreign investors likely reduced exposure to IT stocks aggressively in the cash market, as the IT index fell 8.2 percent in the week ended February 13.
(With PTI Inputs)
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February 15, 2026, 16:54 IST
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New Delhi: Gold continues to remain the most trusted investment option among young Indians, even as access to financial products like mutual funds, stocks, and cryptocurrencies expands, according to a recent consumer survey.
The Smytten PulseAI survey, conducted among 5,000 consumers aged 18–39, found that 62 percent of respondents chose gold as their preferred investment, highlighting the metal’s enduring appeal among Gen Z and Millennials.
When asked how they would invest Rs 25,000, about 61.9 percent said they would choose gold, far ahead of mutual funds (16.6 percent), fixed deposits (13 percent), stocks (6.6 percent), and crypto (1.9 percent), the survey showed.
The findings also indicate that gold buying is becoming more personal and investment-driven rather than tradition-led. Around 66.7 percent of respondents said their gold purchases were primarily their own decision, reflecting a shift in mindset among younger investors.
Another notable trend is the move toward smaller and more frequent purchases. Nearly 62 percent of recent gold purchases were below 5 grams, suggesting that younger buyers are entering the market gradually instead of making large, occasional purchases.
Gold’s appeal becomes even stronger during uncertain economic conditions. The survey found that 65.7 percent of respondents consider gold the safest investment option compared with bank savings, mutual funds, or equities.
For many young earners, gold is no longer bought only for weddings or family occasions. Nearly 24 percent said their first gold purchase was linked to receiving their first salary, while 23.9 percent bought gold as an investment decision, signalling changing motivations behind gold ownership.
Overall, the survey highlights that while investment behaviour among young Indians is evolving, gold continues to play a central role as a trusted store of value and financial safety net.
Business
PPF account rules: Why you can open only one PPF account and what it means for your tax savings
New Delhi: The Public Provident Fund (PPF) is one of India’s most popular long-term, government-backed savings schemes. But many investors often wonder whether they can open multiple PPF accounts to increase their tax-saving investments. The government’s rules are clear — an individual can hold only one PPF account in their own name.
Opening additional PPF accounts in different banks or post offices is not permitted under the PPF Scheme. If more than one account is discovered in the same person’s name, the extra account will be treated as irregular and may have to be closed, with interest on the additional account typically not paid.
However, the rules allow parents or guardians to open a separate PPF account for a minor child. Even in such cases, the total annual contribution across the individual’s own account and the minor’s account cannot exceed Rs 1.5 lakh in a financial year, which is the maximum investment limit under Section 80C.
The PPF scheme remains a long-term savings instrument with a 15-year maturity period, offering tax-free interest and government-guaranteed returns. Investors can deposit a minimum of Rs 500 and up to Rs 1.5 lakh annually, making it a widely used option for retirement and tax planning.
In short, while you cannot open more than one PPF account in your own name, you can still invest in separate accounts for eligible family members such as minor children, within the overall contribution limits set by the government.
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