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Chancellor Rachel Reeves Defends Controversial National Insurance Hike

Chancellor Rachel Reeves has faced criticism for the recent increase in employer National Insurance (NI) contributions, asserting that the rise is essential for stabilizing public finances. With a projected £20 billion annual revenue from the hike, businesses, including GPs, warn it could adversely affect services and wages. Opposition leader Kemi Badenoch challenged the rationale behind the decision, arguing it won’t spur growth. Reeves acknowledged the backlash but emphasized the necessity of funding crucial public services, while navigating the complexities of the UK’s evolving economic landscape and criticism from her own party regarding tax policies.

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