Item 1 of 2 Britain’s Chancellor of the Exchequer Rachel Reeves speaks at the Britain’s Labour Party’s annual conference in Liverpool, Britain, September 23, 2024. REUTERS/Phil Noble/File Photo

[1/2]Britain’s Chancellor of the Exchequer Rachel Reeves speaks at the Britain’s Labour Party’s annual conference in Liverpool, Britain, September 23, 2024. REUTERS/Phil Noble/File Photo Purchase Licensing Rights, opens new tab

Oct 22 (Reuters) – British finance minister Rachel Reeves is expected to impose national insurance on employers’ pension contribution in her Oct. 30 budget, in a move that would largely exempt public sector workers, The Times reported on Tuesday.

The move is expected to raise 15.4 billion pounds ($19.99 billion) and will reimburse public sector employers, including the National Health Service and government departments, the report said.

The reimbursement is estimated to cost 5 billion pounds and the move would fall entirely on businesses and the private sector, the report said.

Britain’s Treasury did not immediately respond to a Reuters request for comment.

Reeves has been eyeing tax rises and spending cuts to a value of around 40 billion pounds ($52.19 billion), two government sources earlier told Reuters, after she was quoted as saying there was a “big gap” to be filled in the budget.
Reeves had previously declined to rule out raising taxes on national insurance that businesses pay, saying that a pre-election commitment not to raise the rate of social security contributions applied to workers.

Prime Minister Keir Starmer had promised voters before last July’s election that he would not put up income tax rates or other key rates of taxation, adding to the new government’s challenge of improving public services and raising investment.

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Reporting by Kanjyik Ghosh and Angela Christy in Bengaluru; Editing by Leslie Adler and Sandra Maler

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