Reeves Encouraged to Adjust National Insurance Contributions and Augment Income Tax in Upcoming Budget for 2025

Rachel Reeves is being advised to reduce the employee national insurance rate by 2p and add the amount to income tax in her upcoming autumn budget to increase government revenue without affecting workers’ pay packets. The influential thinktank, Resolution Foundation, suggests that this move would help to equalize how different forms of income are taxed and could generate up to £30 billion. They also propose other tax reforms to address issues with the current tax system. However, this policy could conflict with Labour’s manifesto promise not to increase income tax.

Source: https://www.theguardian.com/uk-news/2025/sep/23/reeves-urged-to-take-2p-off-employee-ni-and-add-it-to-income-tax-in-budget