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5h ago

Treasury Reportedly Weighs National Insurance on Rental Income Ahead of Autumn Budget

The unconfirmed option reflects a push to raise about £2 billion without increasing headline tax rates.

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Rachel Reeves has set “red lines” not to raise VAT, income tax or national insurance, but some see this as a way of getting around them

Overview

  • Multiple outlets report officials are examining applying National Insurance to rental income, while the Treasury declined to confirm and reiterated its pledge not to raise employee NI rates, income tax or VAT.
  • The Times’ cited analysis suggests an 8% levy on net property income would have raised roughly £2.18 billion in 2022–23.
  • Allies of Rachel Reeves argue extending NI to property income would keep Labour’s red lines by broadening the base rather than lifting rates.
  • NIESR recently warned of a roughly £41 billion shortfall against fiscal rules, sharpening the search for revenue ahead of the autumn Budget.
  • Critics warn the measure could prompt landlord sell‑offs and squeeze rental supply, while supporters claim it would improve tax fairness; estimates indicate about 360,000 landlords could face bills of around £1,000.