Overview
- This week Bright Blue published a detailed paper that sets out a package of tax changes to finance an expanded social safety net for self‑employed people.
- The plan would scrap employer National Insurance, equalise National Insurance between employees and the self‑employed, and raise income tax bands including a proposed cut‑in 13% band and an additional top rate up to 52%.
- Bright Blue argues the current gap in National Insurance creates roughly a £10 billion shortfall and that the changes would give around five million self‑employed people access to automatic pension enrolment, statutory sick pay, parental leave and Universal Credit.
- Conservative figures warned higher taxes would weaken incentives for founders and entrepreneurs, while Labour ministers have signalled openness to higher top rates and officials say the proposals need Office for Budget Responsibility costing and clear fiscal offsets.
- The paper now sets the agenda ahead of the October 28 Budget, but analysts note major hurdles on implementation, administration of employee‑style benefits for variable self‑employed income, and possible behavioural responses such as tax planning or relocation.