‘Reeves to impose national insurance on pension contributions’

The move is expected to raise £15.4 billion

• Pramod Thomas
• 23 October, 2024

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By: Pramod Thomas

CHANCELLOR Rachel Reeves is expected to impose national insurance on employers’ pension contribution in her Oct. 30 budget, in a move that would largely exempt public sector workers, The Times reported.

The move is expected to raise £15.4 billion ($19.99bn) and will reimburse public sector employers, including the National Health Service and government departments, the report said.

The reimbursement is estimated to cost £5bn and the move would fall entirely on businesses and the private sector, the report said.

Britain’s Treasury did not immediately respond to a Reuters request for comment.

Reeves has been eyeing tax rises and spending cuts to a value of around £40bn ($52.19bn), two government sources earlier told Reuters, after she was quoted as saying there was a “big gap” to be filled in the budget.

Reeves had previously declined to rule out raising taxes on national insurance that businesses pay, saying that a pre-election commitment not to raise the rate of social security contributions applied to workers.

Prime minister Keir Starmer had promised voters before last July’s election that he would not put up income tax rates or other key rates of taxation, adding to the new government’s challenge of improving public services and raising investment.

(Reuters)