Rachel Reeves, UK chancellor of the exchequer, outside 11 Downing Street ahead of presenting her budget to parliament in London, UK, on Wednesday, Oct. 30, 2024. Bloomberg | Bloomberg | Getty Images
LONDON — British businesses are smarting after Finance Minister Rachel Reeves’ bumper tax-rising budget, with analysts warning that the measures could slow hiring and push up inflation. An increase to the National Insurance (NI) payroll tax paid by employers was by far the largest revenue raising measure announced Wednesday, with Reeves forecasting the move would raise £25 billion ($32.3 billion) per year over the course of the parliament. Under the new rules, employer NI will rise by 1.2 percentage points to 15% from April 2025, while the level at which employers start paying NI for workers will drop from £9,100 to £5,000. The widely anticipated employer levy allowed Reeves to honour the Labour government’s manifesto pledge not to raise taxes on
UK tax-raising budget hits hiring, boosts inflation, businesses warn
