Overview
- Multiple outlets report the chancellor has signalled plans to increase personal taxation for the 26 November Budget, with the OBR due to present its assessment to the Treasury on Monday.
- One option under review is a 2p rise in income tax paired with a 2p cut to employee National Insurance on earnings up to £50,270, which the Resolution Foundation says could raise about £6bn.
- The Treasury is also weighing a cap of roughly £2,000 a year on NI‑free salary‑sacrifice pension contributions, mainly affecting private‑sector schemes, with some estimates putting the yield at up to around £2bn.
- Analysts say such measures would leave many employees’ take‑home pay broadly unchanged but increase liabilities for pensioners, landlords and the self‑employed who do not gain from NI cuts.
- Modelling points to significant hits for retirees, with LCP estimating an average pensioner could pay about £380 more a year and AJ Bell warning some additional‑rate pensioners could face increases of roughly £2,503.