Employee pension contributions ‘to be targeted in Budget’

• Chancellor Rachel Reeves is reportedly planning to impose national insurance on employee pension contributions exceeding £2,000 annually.
• This proposed measure aims to raise up to £2 billion per year for the upcoming Budget.
• The change would primarily affect high earners, with an example suggesting an employee earning £50,270 could pay an additional £240 in national insurance.
• The proposal follows earlier reports that Ms Reeves intends to increase income tax, potentially with a 2p rise balanced by a 2p cut in national insurance.
• Despite internal party warnings against breaking manifesto pledges, the Chancellor has indicated that sweeping tax rises are necessary, stating 'each of us must do our bit.'

IN FULL

Reeves ‘targets tax raid on employee pension contributions at Budget’