Lower pay rises likely due to Budget tax increases, Rachel Reeves admits

Chancellor Rachel Reeves said that tax rises in the Budget ‘will have consequences’ but that the decisions were ‘necessary’ (Jordan Pettitt/PA) - (PA Wire)

Tax increases in the Budget are likely to hit workers in the pocket with lower pay rises, Rachel Reeves has admitted.

The Chancellor acknowledged her decision to raise national insurance contributions (NIC) for employers could affect wage growth for private sector workers, or companies will have to absorb costs.