Overview

• Cutting employee national insurance by 2p and raising income tax by 2p would raise about £6bn by bringing pensioners, landlords and the self‑employed further into the tax base while leaving salaried workers’ bills unchanged.
• The report says roughly £20bn in additional revenue is needed by 2029/30 under current plans due to higher borrowing costs, weak growth and new spending commitments.
• Further options include a higher soft drinks levy worth about £3.5bn by 2029/30, lowering the VAT threshold toward £30,000 to raise around £2bn a year, tackling £15bn in unpaid corporation tax, and adding carbon charges to long‑haul travel and shipping.
• The recommendation creates a technical clash with Labour’s manifesto pledge not to raise income tax, national insurance or VAT.
• The Treasury declined to comment on potential measures, and the proposals draw added attention because the foundation’s former chief executive, Torsten Bell, is now a Treasury minister as Rachel Reeves prepares a 26 November Budget.