Biggest tax hike of Labour Budget revealed - Rachel Reeves to launch fresh ￡20bn raid. (Image: Getty)
Rachel Reeves is set to introduce the biggest tax hike of the Labour budget targeting UK businesses.
DON'T MISS
Powered by
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
Rachel Reeves' great escape - how Labour Chancellor could blunder way to Budget win
21 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
51 Comments
Labour stealth tax raid to punish high earners and squeeze Middle Brits
1 Comments
Rachel Reeves planning up to ￡40bn of tax rises and spending cuts in Budget
722 Comments
Expert warns Rachel Reeves must commit to 'tax lock' to save our pensions
3 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Angela Rayner admits her hard-left workers' rights will hammer small businesses
490 Comments
Backlash over move to spare public sector from Budget pension raid
2 Comments
Labour plunged into new crisis as doctors threaten to quit over Rachel Reeves pension raid
127 Comments
Fury over 'disastrous' ￡13,000 loss to private pension pots
1 Comments
Rachel Reeves to put economy in 'doom-loop' as tax rises to spark 'bonfire of jobs'
127 Comments
I'm a pensions expert - these are the 3 worst things Rachel Reeves could do in the Budget
5 Comments
'Im an expert - these are the worst 3 things Rachel Reeves could do in the Budget'
1 Comments
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
Rachel Reeves' great escape - how Labour Chancellor could blunder way to Budget win
21 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
51 Comments
Labour stealth tax raid to punish high earners and squeeze Middle Brits
1 Comments
Rachel Reeves planning up to ￡40bn of tax rises and spending cuts in Budget
722 Comments
Expert warns Rachel Reeves must commit to 'tax lock' to save our pensions
3 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Angela Rayner admits her hard-left workers' rights will hammer small businesses
490 Comments
Backlash over move to spare public sector from Budget pension raid
2 Comments
Labour plunged into new crisis as doctors threaten to quit over Rachel Reeves pension raid
127 Comments
Fury over 'disastrous' ￡13,000 loss to private pension pots
1 Comments
Rachel Reeves to put economy in 'doom-loop' as tax rises to spark 'bonfire of jobs'
127 Comments
I'm a pensions expert - these are the 3 worst things Rachel Reeves could do in the Budget
5 Comments
'Im an expert - these are the worst 3 things Rachel Reeves could do in the Budget'
1 Comments
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
The move is expected to generate ￡20 billion for the NHS. As part of the proposal, Reeves will increase employers’ national insurance contributions by up to 2%, according to The Times.
Currently set at 13.8%, this change will place additional financial pressure on private sector businesses, who are already concerned about the potential impact on wages and hiring.
On top of that, the Chancellor is expected to make a -“significant” cut to the earnings -thresholds at which employers start making national insurance contributions.
A Government source said: "The NHS needs more money." They added, "She [Reeves] is choosing not to ask working people to pay the price for their [Conservatives’] failures."
READ MORE: Rachel Reeves set to launch 'devastating' ￡2.9bn tax raid on UK seaside towns
The move is expected to generate ￡20 billion for the NHS. (Image: Getty)
However, Reeves is facing criticism from business leaders, who argue the move could harm growth and slow down hiring.
Andy Scott from the CBI expressed concerns over the policy’s impact, saying: "Firms have told us that increasing employers’ levies will impact their growth plans with potential implications on pay, hiring, and investment."
Similarly, Tina McKenzie of the Federation of Small Businesses added: "Small employers need to be paying less tax, not more, on jobs."
Another measure likely to be included in the budget is a reduction in the earnings threshold for employer national insurance contributions, currently set at ￡9,100.
Don't miss...
Lee Anderson mocks Rachel Reeves with four-word dig as questions raised over CV [INSIGHT]
Fresh nightmare Starmer as Tories secure thumping double by-election victory [REVEAL]
'I'm a finance expert - Reeves will probably target these 10 areas in Budget' [LATEST]
Reeves is facing criticism from business leaders. (Image: Getty)
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
These combined changes are anticipated to place increased financial demands on businesses, particularly small to medium-sized firms, who may struggle to absorb the extra costs.
Labour insiders claim that Reeves will argue the tax increase is necessary due to the economic challenges inherited from the previous government.
The Chancellor has dismissed alternative proposals, such as reversing a previous national insurance cut, as this would have directly impacted employee take-home pay.
DON'T MISS
Powered by
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
Rachel Reeves' great escape - how Labour Chancellor could blunder way to Budget win
21 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
51 Comments
Labour stealth tax raid to punish high earners and squeeze Middle Brits
1 Comments
Rachel Reeves planning up to ￡40bn of tax rises and spending cuts in Budget
722 Comments
Expert warns Rachel Reeves must commit to 'tax lock' to save our pensions
3 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Angela Rayner admits her hard-left workers' rights will hammer small businesses
490 Comments
Backlash over move to spare public sector from Budget pension raid
2 Comments
Labour plunged into new crisis as doctors threaten to quit over Rachel Reeves pension raid
127 Comments
Fury over 'disastrous' ￡13,000 loss to private pension pots
1 Comments
Rachel Reeves to put economy in 'doom-loop' as tax rises to spark 'bonfire of jobs'
127 Comments
I'm a pensions expert - these are the 3 worst things Rachel Reeves could do in the Budget
5 Comments
'Im an expert - these are the worst 3 things Rachel Reeves could do in the Budget'
1 Comments
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
Rachel Reeves' great escape - how Labour Chancellor could blunder way to Budget win
21 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
51 Comments
Labour stealth tax raid to punish high earners and squeeze Middle Brits
1 Comments
Rachel Reeves planning up to ￡40bn of tax rises and spending cuts in Budget
722 Comments
Expert warns Rachel Reeves must commit to 'tax lock' to save our pensions
3 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Angela Rayner admits her hard-left workers' rights will hammer small businesses
490 Comments
Backlash over move to spare public sector from Budget pension raid
2 Comments
Labour plunged into new crisis as doctors threaten to quit over Rachel Reeves pension raid
127 Comments
Fury over 'disastrous' ￡13,000 loss to private pension pots
1 Comments
Rachel Reeves to put economy in 'doom-loop' as tax rises to spark 'bonfire of jobs'
127 Comments
I'm a pensions expert - these are the 3 worst things Rachel Reeves could do in the Budget
5 Comments
'Im an expert - these are the worst 3 things Rachel Reeves could do in the Budget'
1 Comments
Doctors warn any Budget attack on pension perks will fuel exodus from NHS
2 Comments
Rachel Reeves slammed by Labour grandee over Budget plans for retirees
Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
38 Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
488 Comments
'I'm a finance expert - Rachel Reeves will probably target these 10 areas in Budget'
4 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Rachel Reeves under pressure ahead of Budget as NHS needs ￡9bn to keep going this year
114 Comments
Another option - imposing national insurance on employer pension contributions - was rejected amid concerns that it could affect retirement savings.
With borrowing costs for the government also on the rise, and bond yields for UK government bonds edging up, the Treasury is carefully monitoring the impact of this spending on the economy.
Adam Corlett from the Resolution Foundation suggested that the increase in employer NI "may slow the pace of wage growth and further incentivise bogus self-employment," stressing that other methods could potentially raise similar revenues with less negative impact on businesses.