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Tax Hike on Middle Earners Proposed to Cover £30 Billion Gap

9/26/2025

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Story summary
  • Reeves faces pressure to raise taxes on middle earners to cover a £30 billion gap.
  • Institute for Government suggests broadening the tax burden to average earners as least damaging.
  • Resolution Foundation advocates a 2% income tax rise offset by a National Insurance cut, raising £6 billion.
  • Economic experts warn that maintaining current tax commitments may become increasingly difficult.