Overview

• The Resolution Foundation is calling for a 2p cut to employee National Insurance with a matching 2p rise in income tax from the November 26 Budget, which it estimates would raise about £6bn a year.
• The think tank says the switch would collect more from people who pay income tax but not employee NI, such as pensioners, landlords and the self‑employed, while protecting employees’ take‑home pay.
• It frames the change as correcting a double tax on work and part of a wider need to raise at least £20bn a year by 2029–30 to meet fiscal rules.
• House of Commons Library research, commissioned by the Liberal Democrats, warns that extending the income‑tax threshold freeze could raise £10.4bn but leave the average worker £285 worse off by 2030, with bigger hits estimated in London (£350) and the South East (£320).
• The Treasury declined to comment on tax speculation, the Liberal Democrats urged Reeves to rule out a ‘stealth tax’ freeze, and the Institute for Government argued that necessary tax rises are likely to fall on those with average incomes.