Reeves ‘targets tax raid on employee pension contributions at Budget’
Employee pension contributions ‘to be targeted in Budget’
- Chancellor Rachel Reeves is reportedly planning to impose national insurance on employee pension contributions exceeding £2,000 annually.
- This proposed measure aims to raise up to £2 billion per year for the upcoming Budget.
- The change would primarily affect high earners, with an example suggesting an employee earning £50,270 could pay an additional £240 in national insurance.
- The proposal follows earlier reports that Ms Reeves intends to increase income tax, potentially with a 2p rise balanced by a 2p cut in national insurance.
- Despite internal party warnings against breaking manifesto pledges, the Chancellor has indicated that sweeping tax rises are necessary, stating 'each of us must do our bit.'