Overview
- Multiple outlets report a likely 'two up, two down' move that would lift income tax by about 2p while trimming the main employee NI rate by 2p for earnings up to £50,270, shifting more of the burden onto pensioners and landlords who do not pay NI.
- The Chancellor is also reported to be preparing a £2,000 cap on NIC‑free salary‑sacrifice pension contributions, a change estimated to raise roughly £2bn a year that HMRC research and employer groups warn could reduce benefits and deter saving.
- Analysis suggests many retirees would pay more, with AJ Bell modelling an annual hit of about £2,500 for some higher‑rate pensioners and LCP estimating around £380 more for the average state pensioner.
- The OBR is set to cost the measures this week, with revised forecasts due Monday and final Budget plans expected to be submitted by the Treasury mid‑week ahead of the 26 November statement.
- Political pushback has intensified, with Labour figures warning about breaking the party’s tax pledge and Scotland’s finance secretary seeking talks as analysts flag potential budget consequences for devolved administrations.