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Rachel Reeves urged to cut national insurance and hike income tax in upcoming budget

The Resolution Foundation proposes a 2p cut to national insurance and a 2p rise in income tax to address tax unfairness and raise £6 billion, easing the burden on workers' pay.

  • Chancellor Rachel Reeves prepares to deliver a November 26 Budget expected to include significant tax rises amid fiscal challenges in the UK.
  • The need for tax increases arises from rising borrowing costs, flat economic growth, and new government spending commitments this autumn.
  • The Resolution Foundation recommends cutting national insurance by 2p and raising income tax by 2p to create a fairer tax system.
  • This tax switch could raise £6 billion since income tax covers more people, including pensioners and landlords, while sparing salaried workers.
  • The Budget’s outcomes may be painful, requiring the Chancellor to cautiously balance tax rises while protecting workers’ pay and calming bond markets.
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The Herald ScotlandThe Herald Scotland
+10 Reposted by 10 other sources
Lean Left

HMRC changes could see higher Income Tax and National Insurance cuts, say experts

National insurance should be cut and income tax increased to protect workers’ pay, say some experts, but opinions are divided

·Scotland, United Kingdom
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  • 68% of the sources are Center
68% Center

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The Times broke the news in United Kingdom on Monday, September 22, 2025.
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