That's what the BBC is reporting. The higher income tax rate won't, however, apply until after the next election and only for those earning £150,000 or more.
Keeping income tax rates down was one of the landmark pledges associated with New Labour. That pledge is about to be buried.
Labour plan to use the higher rate to taunt the Tories. If the Conservatives oppose the higher band they'll be painted as 'friends of the rich'.