Chancellor Rachel Reeves announced a 1.2 percentage point rise in employers’ national insurance contributions to 15%, effective from April 2025. Calling it “the right choice,” she said that there is a need for “difficult decisions” to fund public services and stabilise the economy. Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00The last government made cuts of £20 billion to employees and self-employed national insurance
00:06in their final two budgets. These tax cuts were not honest, because we now know that
00:12they were based on a forecast which the OBR say would have been materially different.
00:18It would have been materially different had they known the true extent of the last government's
00:25cover-up. Since July, I have been urged on multiple occasions to reconsider these cuts,
00:32to increase the taxes that working people pay and see in their payslips. But I have
00:37made an important choice today, to keep every single commitment that we made on tax in our
00:43manifesto. So I say to working people, I will not increase your national insurance, I will
00:51not increase your VAT and I will not increase your income tax. Working people will not see
00:59higher taxes in their payslips as a result of the choices that I am making today. That
01:06is a promise made and a promise fulfilled. But any responsible Chancellor would need
01:14to make difficult decisions today. To raise the revenues required to fund our public services
01:21and to restore economic stability.
01:25So in today's budget, I am announcing an increase in employers' national insurance
01:29contributions. We will increase the rate of employers' national insurance by 1.2 percentage
01:36points to 15% from April 2025. And we will reduce the secondary threshold, the level
01:43at which employers start paying national insurance, on each employer's salary from £9,100 a
01:49year to £5,000. This will raise £25 billion per year by the end of the forecast period.