Back to today’s briefing

Story perspectives

Tax Cuts and Hikes: Budget Battle Sparks Controversy

9/24/2025

41 8 Full Breakdown

Summary

Story summary

Resolution Foundation urges Chancellor Rachel Reeves to cut national insurance by 2p and raise income tax by 2p, generating £6 billion.
Institute for Government calls Labour's tax plan unrealistic and urges reform.
KPMG notes health, defense, and welfare costs require steady tax rises.
Pensioners may bear new tax burdens as the Budget aims to plug a £30 billion shortfall.

History

Historical Context

The UK's National Insurance Act of 1974 established a social security funding framework, leading to a 25% rise in contributions over the next decade. This historical shift in tax structure reflects ongoing debates about fiscal responsibility, as seen in the Resolution Foundation's recent proposal to cut National Insurance while increasing income tax, highlighting the persistent challenge of balancing economic growth with social welfare.

1 of 2

Story summary

Resolution Foundation urges Chancellor Rachel Reeves to cut national insurance by 2p and raise income tax by 2p, generating £6 billion.
Institute for Government calls Labour's tax plan unrealistic and urges reform.
KPMG notes health, defense, and welfare costs require steady tax rises.
Pensioners may bear new tax burdens as the Budget aims to plug a £30 billion shortfall.

1 / 2