The chancellor has been urged to target landlords as part of a proposed £6bn tax raid, according to think tank Resolution Foundation.
Ahead of the Autumn Budget in November, the Resolution Foundation has urged Rachel Reeves to cut National Insurance employee contributions while raising income tax to generate £6bn in additional revenue.
This would involve a 2p cut to NI contributions and a 2p rise to income tax.
The Resolution Foundation has argued this would alleviate tax pressures on employees, asking more of those who pay income tax but not NI — including landlords.
Adam Corlett, principal economist at the Resolution Foundation, said any tax rises would be “painful”, but it was necessary for the chancellor to avoid loading “further pain” onto workers.
“She can do this by switching our tax base away from employee NI and onto income tax, which is paid by a far broader group in society,” explained Adam.
“This should form part of wider efforts to level the playing field on tax, such as ensuring that lawyers and landlords face the same tax rates as their clients and tenants.
“These sensible reforms would raise revenue while doing the least possible harm to workers and the wider economy — by acting decisively, the chancellor can turn her full attention back onto securing stronger economic growth.”
