'A tax on jobs' | Concerns raised as rumours grow of National Insurance hike for firms

The Government is not ruling out suggestions that businesses may face higher National Insurance contributions, prompting concerned reactions from industry bodies.

Chancellor Rachel Reeves is preparing to unveil her first budget on October 30th, and must address a £22 billion deficit in public finances left by the previous government. 

Both Reeves and Prime Minister Keir Starmer have pledged not to increase income tax, National Insurance for workers, or VAT rates, and have committed to freezing corporation tax for businesses.

But when asked if companies could be asked to pay more in National Insurance, Reeves highlighted that Labour’s commitment on the levy pertains specifically to workers, not businesses.