- Keir Starmer hints employers’ National Insurance may increase
- Labour’s 2024 manifesto avoids tax hikes for working individuals
- Chancellor Rachel Reeves will deliver Labour’s first Budget on October 30, 2024
Sir Keir Starmer said he had not ruled out increasing National Insurance for employers in the Budget.
The Labour Party’s 2024 manifesto prohibits hiking National Insurance, income tax, and VAT.
However, Sir Keir avoided queries about whether Labour’s vow not to raise taxes for “working people” included employers’ National Insurance (NI).
Speaking at Downing Street, Sir Keir stated that this month’s Budget would be “tough” but would “focus on rebuilding our country.”
Employers presently pay NI 13.8% on all employee wages above £175 per week.
Speculation has grown that employers’ NI rates could rise next month to address a £22 billion “black hole” in the nation’s coffers, which Labour claims it has discovered.
On Monday, Rachel Reeves stated that Labour’s election promise not to raise NI on “working people” referred to the employee component rather than the amount paid by employers.
When will the budget be released, and what might it include?
Chancellor Rachel Reeves will give Labour’s first budget on Wednesday, October 30.
In early September, she told me it would include “difficult decisions” on tax, spending, and benefits.
However, her speech at the Labour Party conference was more upbeat about the economy’s prospects.
What’s the budget?
Every year, the chancellor of the exchequer, who oversees the government’s finances, delivers a Budget statement to MPs in the House of Commons.
The speech describes the government’s proposals to raise or cut taxes.
It also includes significant budget decisions for health care, education, law enforcement, and other public services.
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The previous Conservative Chancellor, Jeremy Hunt, presented the final Budget in March 2024, before the general election.
However, following a change of government, the new chancellor presents another budget in the autumn to outline their financial priorities.
When is the autumn Budget, and what time is the speech?
The 2024 autumn budget will be presented on Wednesday, October 30.
The Budget address typically begins at about 12:30 UK time and lasts roughly an hour.
As soon as Reeves takes his seat, the current opposition leader, Conservative Party leader Rishi Sunak, will deliver a speech in response to the Budget.
What happens following the budget speech?
The Treasury, the government agency in charge of the economy and public spending, releases a report in conjunction with the Budget statement. It provides more excellent information about the measures announced and their costs.
The independent Office for Budget Responsibility (OBR) monitors government expenditure and provides an impartial assessment of the UK economy’s health.
Following the statement, MPs debated the measures for several days. They are then asked to endorse the ideas, and the government drafts a Finance Bill to make the Budget pronouncements become law.
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