Rachel Reeves 'not immune' to National Insurance hike criticism

Published On Nov 3, 2024, 6:47 AM

Chancellor Rachel Reeves has defended her decision to increase National Insurance contributions for employers, which has faced criticism from various sectors including health services. The new rate of 15% on salaries above £5,000 is aimed at stabilizing public finances following the economic repercussions of the previous government. Critics, including the new Conservative leader Kemi Badenoch, argue this move could hinder growth and negatively impact businesses and services. Reeves acknowledges the criticism but insists the tax increase is necessary to address the financial challenges left by her predecessors.