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Economists Urge Tax Hikes to Stabilize Public Finances

11/6/2025

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Summary

Story summary

National Institute of Economic and Social Research (NIESR) economists recommend raising the basic rate from 20p to 22p and the higher rate from 40p to 50p, a move that could raise about £35 billion for the Treasury.
The think tank says the measure is necessary to stabilize public finances, despite Labour's pledges against tax hikes.
Chancellor Rachel Reeves faces pressure to respond to the proposal as fiscal concerns grow.

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Story summary

National Institute of Economic and Social Research (NIESR) economists recommend raising the basic rate from 20p to 22p and the higher rate from 40p to 50p, a move that could raise about £35 billion for the Treasury.
The think tank says the measure is necessary to stabilize public finances, despite Labour's pledges against tax hikes.
Chancellor Rachel Reeves faces pressure to respond to the proposal as fiscal concerns grow.