Overview
- Rachel Reeves will frame the Nov. 26 Budget around fairness and opportunity with priorities of protecting the NHS, reducing national debt and improving the cost of living.
- No 10 has declined to re-commit to Labour’s pledge not to raise income tax, VAT or National Insurance for working people, and the Treasury says it will not comment on tax speculation.
- The Resolution Foundation’s widely discussed idea to shift 2p from employee National Insurance to income tax is estimated to raise about £6 billion while largely shielding most employees’ pay packets.
- AJ Bell analysis suggests pensioners would be hit by such a switch because they do not pay NI, with illustrative increases of roughly £450 at £35,000 income and about £1,049 at £65,000.
- Independent forecasters say restoring fiscal headroom could require around £22 billion, with reported options under consideration including higher council tax bands, a mansion tax, extended income tax threshold freezes and changes to pension tax relief.