Reeves warned over ‘straightforward breach’ of manifesto if Labour hikes national insurance in Budget

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} Rachel Reeves has been warned that hiking employer national insurance contributions would be “a straightforward breach” of the Labour manifesto. Paul Johnson, director of the IFS, said raising employer national insurance contributions would be a ‘straightforward breach’ of Labour’s manifesto Currently employees pay the charge at 8 per cent of their earnings above £12,500, while employers pay a flat rate of 13.8 per cent. I went back and read the manifesto and it says very clearly ‘We will not raise rates of national insurance.’ It doesn’t specify employee national insurance.” Chancellor Rachel Reeves has warned of ‘tough decisions’ as Labour says it needs to plug a £22bn ‘black hole’ in the public finances left by the Conservatives But Mr Johnson said that Ms Reeves will “almost certainly” have to breach Labour’s pledge in one way or another if she wants to raise significant sums at the 30 October Budget. Shadow work and pensions secretary Mel Stride said it would be “absurd” for Labour to hike national insurance for employers and claim it was not a breach of the party’s manifesto.