Overview
- Multiple outlets report the chancellor has notified the OBR that personal tax rises are among major Budget measures, with an impact assessment due to the Treasury on Monday ahead of the 26 November statement.
- A central option under consideration is the 'two up, two down' plan: lifting income tax rates by 2p while cutting the main rate of employee NI by 2p on earnings up to £50,270, which the Resolution Foundation estimates could raise about £6bn.
- Because pensioners do not pay NI, analyses suggest they would face higher bills, with indicative estimates of roughly £300 more for typical retirees and up to about £2,500 a year for additional‑rate taxpayers.
- Officials are also close to finalising a £2,000 annual cap on salary‑sacrifice pension contributions before NI is charged, a change expected to raise around £2bn but flagged by HMRC research as likely to face strong employer opposition.
- The reported measures form part of a broader review of pension tax reliefs and come alongside a confirmed move to bring unspent pensions into inheritance tax from April 2027, drawing sharp political criticism over a broken manifesto pledge and concern in Scotland over funding consequences.