>Chancellor Rachel Reeves is eyeing up a simultaneous 2p hike to income tax and 2p cut to national insurance, it has been reported, in an effort to raise some £6bn.
>It would also only affect pensioners and landlords who do not pay national insurance.
I’m absolutely in favour of this. Pensioners and landlords shouldn’t get a tax break next to workers.
It’s far better in keeping with the manifesto pledge of not impacting working people than the ER NIC hike was.
Electricbell20 on
Scatter gun budget guessing season is officially upon us.
Scary-Spinach1955 on
Sure sure. Give with one hand, take with the other
Labour, everybody.
TellMeManyStories on
Income tax and NI are basically taxing the same thing (income).
Can we not simply combine them into a single tax to make everyone’s lives simpler?
Adm_Shelby2 on
Still another month of budget policy speculation to go, kill me now.
wkavinsky on
There’s nothing controversial in cutting NI by X% while similarly raising income tax by the same amount – it’s (mostly) revenue neutral for all workers (it’ll only affect workers over the NI cut off amount).
It will however seriously affect the grey boomers and the „income through wealth“ peeps who don’t have to *pay* NI in the first place.
Then again, I’d rather she just bite the bullet and roll **all** employee NI into income tax (raise the basic rate by 6%, higher rate by 1% and additional rate by 1%) so that all people in the UK pay the same level of taxes, without the carve out for the rich and the retired.
PhyllisCaunter on
Get it done, a rise to the basic rate. We can then all have a moan and get on with our lives.
But whatever happens from here on, please stop trying to gauge public sentiment with the drip, drip approach as used by the Tories. The constant uncertainty and subsequent fear mongering is killing any prospect growth.
Jaded_Strain_3753 on
National insurance is a stupid tax conceptually so I would support this honestly
Canisa on
I’d rather just get rid of NI altogether and have it rolled up into income tax – do the same to capital gains as well, it’s crazy that’s a separate tax just because it’s a different kind of income.
Brother-Executor on
What about the money owed through her illegally letting her house out?
terrordactyl1971 on
Probably just dump NI altogether and put 5% on each tax bracket and be done with it once and for all
Old_Course9344 on
Just another band-aid fix unfortunately
What Reeves should do is push pensioners into care homes by retirement, freeing up the housing market. She can do this by attacking through income tax
Tax hikes should also be linked to your age/birthday.
Every year from the age of 18 until retirement you get a tax hike on your birthday!
This would allow care homes to be free of charge for the entire population when people come to retirement.
Is 1p hike a year more than enough? Or will 0.25p do?
BenisDDD69 on
Wouldn’t this change also negate some/most/all of the impact caused by the raised employer NI contributions?
carmatil on
Of all the speculated ways Reeves might break the manifesto pledges, this is the only one I can actually imagine her standing up to defend. I can see Labour shifting their language to “we promised we wouldn’t raise the overall level of income tax, national insurance, and VAT” and claim they haven’t broken that promise.
systemofamorch on
This is a good tweak imo – keep reducing the employee side NI and raising income to match
Also need to remove the weird 100k thing by keeping the personal allowance for over 100k, but just reduce the additional tax band from 125k to 115k or something like that
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>Chancellor Rachel Reeves is eyeing up a simultaneous 2p hike to income tax and 2p cut to national insurance, it has been reported, in an effort to raise some £6bn.
>Reeves is considering the controversial tax hike, according to [The Telegraph](https://www.telegraph.co.uk/politics/2025/10/29/keir-starmer-opens-door-to-income-tax-increase/), which would breach the Labour Party manifesto and risk infuriating voters.
>It would also only affect pensioners and landlords who do not pay national insurance.
I’m absolutely in favour of this. Pensioners and landlords shouldn’t get a tax break next to workers.
It’s far better in keeping with the manifesto pledge of not impacting working people than the ER NIC hike was.
Scatter gun budget guessing season is officially upon us.
Sure sure. Give with one hand, take with the other
Labour, everybody.
Income tax and NI are basically taxing the same thing (income).
Can we not simply combine them into a single tax to make everyone’s lives simpler?
Still another month of budget policy speculation to go, kill me now.
There’s nothing controversial in cutting NI by X% while similarly raising income tax by the same amount – it’s (mostly) revenue neutral for all workers (it’ll only affect workers over the NI cut off amount).
It will however seriously affect the grey boomers and the „income through wealth“ peeps who don’t have to *pay* NI in the first place.
Then again, I’d rather she just bite the bullet and roll **all** employee NI into income tax (raise the basic rate by 6%, higher rate by 1% and additional rate by 1%) so that all people in the UK pay the same level of taxes, without the carve out for the rich and the retired.
Get it done, a rise to the basic rate. We can then all have a moan and get on with our lives.
But whatever happens from here on, please stop trying to gauge public sentiment with the drip, drip approach as used by the Tories. The constant uncertainty and subsequent fear mongering is killing any prospect growth.
National insurance is a stupid tax conceptually so I would support this honestly
I’d rather just get rid of NI altogether and have it rolled up into income tax – do the same to capital gains as well, it’s crazy that’s a separate tax just because it’s a different kind of income.
What about the money owed through her illegally letting her house out?
Probably just dump NI altogether and put 5% on each tax bracket and be done with it once and for all
Just another band-aid fix unfortunately
What Reeves should do is push pensioners into care homes by retirement, freeing up the housing market. She can do this by attacking through income tax
Tax hikes should also be linked to your age/birthday.
Every year from the age of 18 until retirement you get a tax hike on your birthday!
This would allow care homes to be free of charge for the entire population when people come to retirement.
Is 1p hike a year more than enough? Or will 0.25p do?
Wouldn’t this change also negate some/most/all of the impact caused by the raised employer NI contributions?
Of all the speculated ways Reeves might break the manifesto pledges, this is the only one I can actually imagine her standing up to defend. I can see Labour shifting their language to “we promised we wouldn’t raise the overall level of income tax, national insurance, and VAT” and claim they haven’t broken that promise.
This is a good tweak imo – keep reducing the employee side NI and raising income to match
Also need to remove the weird 100k thing by keeping the personal allowance for over 100k, but just reduce the additional tax band from 125k to 115k or something like that