\n
However, leading economists have warned that it will be workers who eventually pay for the National Insurance rise.<\/p>\n
Paul Johnson, the head of the influential Institute for Fiscal Studies think-tank, told the BBC’s Today programme that when employer National Insurance contributions go up, often they are “passed through to working people”.<\/p>\n
He also suggested that in fact, employees may well be be more affected than self-employed people or small business owners by the potential change.<\/b><\/p>\n
“Unless their taxes are raised in the same way that employer national insurance is going to be raised, that\u2019s a very big tax rise that will effectively only impact workers,” he said.<\/b><\/p>\n
The former Bank of England governor Lord King of Lothbury also said the debate about not putting taxes up for working people was a “terrible illusion”.<\/p>\n
“Ultimately, they fall on the amount that people can spend and you only can raise significant amounts of money by raising taxes on most people, however you care to define that, but it\u2019s most people will have to pay higher taxes,” he told Sky News.<\/p>\n
Critics have argued that employees will also face a greater burden as the chancellor is expected to extend the freeze on income tax thresholds, <\/b>which is currently due to end in April 2028 and sees people pulled into paying higher rates through a phenomenon known as “fiscal drag”.<\/p>\n
Last week, Reeves signalled that businesses would face an increase in National Insurance, when she said Labour’s election pledge not to increase contributions on “working people” related to the staff element, as opposed to the sum paid by employers.<\/p>\n
The government is also reportedly looking at increasing tax on asset sales, such as shares and property, as well as changing its own self-imposed rules on how its debts are measured in order to free up money for spending on infrastructure projects.<\/p>\n<\/div>\n<\/div>\n
![\"UK](\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/94d1\/live\/4732a480-94fe-11ef-888d-4d79a68dfa0c.png.webp)
<\/picture><\/span>PA Media<\/span><\/div>\n<\/figure>\n<\/div>\n