Labour Faces Backlash Over Potential National Insurance Hike, Breaching Manifesto Pledge

Labour is under fire after reports suggest Chancellor Rachel Reeves may raise employer National Insurance contributions in the upcoming Budget, a move that would breach the party's manifesto promises. The Institute for Fiscal Studies (IFS) has warned that such a tax hike would be a 'straightforward breach' of Labour's commitment not to increase National Insurance. Despite growing concerns, Prime Minister Keir Starmer has downplayed the possibility of this change. The potential £30bn tax increase has sparked debate within the party and among economists about its impact on businesses and the economy.