Resolution Foundation says move could raise additional £6bn a year and ‘level the playing field’ on income tax
Rachel Reeves has been urged to take 2p off the rate of employee national insurance and add it to income tax in her autumn budget, to raise billions of pounds while protecting workers’ pay packets.
Putting forward plans to raise up to £30bn, the influential Resolution Foundation thinktank called on the chancellor to “level the playing field” on how different forms of income are taxed.
The organisation, which has close connections with Labour ministers spearheading the budget preparations, urged Reeves to consider a sweeping package of measures to reshape the tax system.
In a report that will be closely scrutinised in the Treasury, it said an additional £6bn a year could be raised through a policy to cut employee national insurance by 2p, with a corresponding increase for all income tax bands.
