01 Nov 2024
Reacting to Chancellor Rachel Reeves' Autumn Budget, think tank the Resolution Foundation has warned that the measures announced 'are only the first step in what's required to boost living standards'.
The Foundation warned that the decision to increase employer National Insurance contributions (NICs) 'comes with risks'. It said that the rise would fall heavily on low-earning jobs and further incentivise 'bogus' self-employment.
It stated that cutting the employer NI threshold and increasing the rate to 15% means employers have had a tax rise equivalent to 6.8% of pay for someone earning £9,100.
Mike Brewer, Interim Chief Executive of the Resolution Foundation, said: 'Rachel Reeves announced £326 billion of extra funding for public services and investment across the parliament, funded by the biggest tax rising Budget on record along with extra borrowing.
'The Chancellor has delivered a Budget that engages with the seriousness of Britain's economic challenges. But it is only the first step of what will be needed to secure strong public services, end stagnation and lift living standards for all.'