HMRC warning issued to millions of workers

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-Credit: (Image: Nick Wilkinson/Birmingham Live)


Millions of working Brits have been warned they could impacted by possible tax rises at Labour's first Budget. While Chancellor Rachel Reeves has pledged to protect "working people" from tax hikes, the Conservatives and independent analysists have been warned they will inevitably be hit by other tax rises.

One of these includes a reported increase on National Insurance contributions paid by employers. While workers wouldn't have to pay any more in this scenario, critics argue the result would be businesses giving fewer pay rises and potentially making more job cuts.

Ms Reeves has ruled out any increases to income tax, National Insurance paid by workers and VAT. But a fuel duty rise - which would directly impact ordinary households - is expected.

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Labour will announce its first Budget in 15 years on October 30, under pressure to stick to its pledges to protect working people but also raise billions of pounds to fix the economy.

Deputy Prime Minister Angela Rayner was pressed on the issue as she stood in for Keir Starmer at Prime Minister's Questions on Wednesday, when she was asked to explain what Labour defined as "working people". Ms Rayner avoided directly answering the question, instead aiming jibes at the Tories over their record in Government.

The Budget will be one of Labour's biggest tests so far since winning the election and follows criticism over its decision to scrap Winter Fuel Payments for all but the poorest pensioners.