The Chancellor looks set to hit businesses in an effort to plug a black hole in the health service finances caused in part thanks to rising wages.
Rachel Reeves is set to hit business to fix the NHS according to reports. (Image: Getty)
The Chancellor looks set to gamble her reputation on hiking taxes for businesses in an attempt to restore the NHS.
With the Budget just around the corner speculation is rising about how Reeves will raise the cash she needs to balance books whilst causing the least political pain.
Now there’s rumours that she will gamble her reputation by increasing National Insurance Contributions paid by employers to plug a gaping £9billion gap in the health budget.
It is believed that the public will accept a multibillion-pound hike in business taxes if it is linked to repairing the health system’s finances, according to The Guardian.
The publication cites new research, commissioned in the run-up to the Budget, by an influential think tank with close links to the Treasury and No 10.
There’s reportedly a £9bn hole in NHS finances. (Image: Getty)
The report suggests support for using an increase in national insurance contributions (NICs) for employers to fund extra resources for the NHS, saying seven in 10 voters said they would approve of the move. The study polled more than 6,000 people and was commissioned by Labour Together. Only 18 percent said they would disapprove.
It’s been reported that the NHS needs an additional £9bn this financial year just to stand still, compared with the settlement it was left by the previous government. That figure includes about £4bn in increased wages agreed by Reeves and the health secretary, Wes Streeting.
The remainder comes from the 2.9 percent rise needed simply for the NHS to maintain its current performance as demand is growing.
Express.co.uk has approached the Treasury for comment.
Meanwhile, A large number of businesses are reportedly “teetering on the edge of collapse” amid uncertainty ahead of the Budget. New data revealed that thousands of British firms have been plunged into significant financial distress this year.
The number of companies in financial distress surged by a third to nearly 633,000 in the three months leading up to the end of September, compared to the same period last year.
Business leaders are now bracing themselves ahead of this month’s Budget, amid concerns that Rachel Reeves is planning the tax NIC hike on businesses.
Experts have also warned that Labour’s proposed workers’ rights bill could add further strain on businesses by making hiring more difficult and costly.
