Reeves's income tax rise could cost Labour Scotland, MPs fear

Chancellor Rachel Reeves has been urged by left-leaning thinktank, the Resolution Foundation, to cut employee national insurance by 2p and raise income tax by the same amount in her autumn budget – a move that would raise billions in revenue while protecting workers’ pay packets and save the Treasury up to £30bn.

A hike in income tax would raise more because it applies to a wider group of taxpayers than employee national insurance, including pensioners, landlords and self-employed people.

Cutting national insurance would be a decision made by the Chancellor in Westminster and would apply across the UK, including Scotland. However, it would be up to the Scottish National Party to decide in its January budget whether to adjust income tax rates to align with those in England and Northern