Rachel Reeves has been warned that hiking employer national insurance contributions would be âa straightforward breachâ of the Labour manifesto. The chancellor has been told by Paul Johnson, director of the influential Institute for Fiscal Studies (IFS), that the party said âvery clearlyâ it would not make the change.
Speculation has mounted that Ms Reeves is laying the groundwork to hike employer national insurance contributions while keeping the levy on employees unchanged. Currently employees pay the charge at 8 per cent of their earnings above £12,500, while employers pay a flat rate of 13.8 per cent.
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