Rachel Reeves ‘plans to raise income tax’ in Budget
Rachel Reeves ‘set to raise taxes for landlords and pensioners’
- Rachel Reeves has reportedly informed the Office for Budget Responsibility (OBR) of her intention to increase income tax in her upcoming Budget.
- The Chancellor is considering a 2p rise in income tax coupled with a 2p cut in National Insurance, aiming to shift the tax burden onto landlords and pensioners.
- This proposed 'two up, two down' package could generate an estimated £6 billion, though the Resolution Foundation suggests £20 billion in tax rises are needed by 2029-30 to meet fiscal rules.
- Pensioners, particularly those with a £35,000 pension, and some self-employed individuals are expected to be the most affected by these changes.
- Reeves has indicated a willingness to prioritise the 'national interest' over 'political expediency,' suggesting she may break a manifesto pledge not to raise income tax.