Reeves’ Path to £6 Billion Tax Hike Floated by UK Think Tank (1)

UK Chancellor of the Exchequer Rachel Reeves could raise £6 billion ($8.1 billion) of income tax without hurting employees by aiming increases at pensioners, landlords and the self-employed, according to an influential think tank.

In an analysis published ahead of the Nov. 26 budget, the Resolution Foundation proposed cutting employee national insurance, a payroll tax, by 2 percentage points and raising the basic rate of income tax by the same amount. The switch would protect employees by shifting the burden onto those who only pay income tax and bring the UK closer to aligning the two rates.

Adopting such a ...