Income tax hike of at least 2p likely needed to plug Budget hole, warns Niesr

Raising income tax would be the ‘least bad option’ as the Chancellor must plug a £50 billion black hole in the public finances, with at least a 2p hike to the basic rate of income tax likely to be needed, a major economic think tank has warned (PA) - (PA Wire)

The Chancellor must plug a £50 billion black hole in the nation’s public finances, with at least a 2p hike to the basic rate of income tax likely to be needed, a major economic think tank has warned.

The National Institute of Economic and Social Research (Niesr) has further raised the spectre of tax increases at the upcoming November 26 Budget as it said it believes Rachel Reeves is on track to miss one of her fiscal rules by £38.2 billion in 2029-30.