Rachel Reeves accepts valid' criticism against major Budget tax hike

"We did make the decision to increase national insurance in my first budget and that's because we needed to properly fund public services, including the National Health Service, which got a 29 billion-a-year uplift. So, I do recognise, and it's a valid argument to say that that should not have happened."

"But if that didn't happen, we wouldn't have been able to put the money into the NHS and reduce waiting lists. And reducing waiting lists in the NHS is also good for business, because it means that more people are available for work, and the workforce is healthier."

Rachel Reeves, the Chancellor, appeared before Parliament's Treasury Committee to address concerns about her 2024 decision to increase employers' national insurance contributions. While acknowledging valid arguments against the policy, she maintained it was essential for funding vital public services, particularly the NHS, which received a 29 billion-pound annual increase. Reeves argued that reducing NHS waiting lists benefits businesses by improving workforce availability and health. She also recognized particular concerns regarding youth unemployment approaching one million, though she attributed some of these issues to inherited economic conditions rather than solely the national insurance increase.

Read at www.independent.co.uk