Ex-Bank of England chief Mervyn King urges Rachel Reeves to raise national insurance in Budget

Former Bank of England governor Mervyn King has advised Rachel Reeves to raise national insurance in her upcoming Budget to address an estimated £25bn deficit in meeting Labour’s spending commitments, warning against higher borrowing. Lord King emphasized the importance of simplicity and transparency, urging against tax system changes and suggesting a review of existing schemes. However, the Tories and the IFS have criticized the potential national insurance hike as a breach of manifesto promises, with Paul Johnson highlighting the need for honesty in addressing the country’s finances.

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