Reeves signals hike in National Insurance for firms

Getty ImagesThe chancellor has given the clearest signal yet that businesses will face an increase in National Insurance on the day the government announced billions of pounds in overseas investment had been secured.
Rachel Reeves said Labour's election pledge not to increase National Insurance on "working people" related to the employee element, as opposed to the sum paid by employers.
Her comments come as businesses await the new government's economic plans in the Budget later this month.
The government claimed its international investment summit on Monday secured £63bn of private funding for UK projects. However, many of the commitments had already been announced in advance.
While the investment pledges signal a boost for the government, many business leaders are closely watching what taxes will be hiked on 30 October.
Reeves reiterated her Budget would be "tough", but stressed difficult decisions would not put off business investment in the UK because she would offer firms long-term certainty about the levels of taxation they will face.
The government has ruled out increasing VAT, National Insurance or income tax, speculation has grown around the rate of National Insurance paid by employers.
Reeves repeated the pledge not to raise taxes on "working people" – echoing comments from Business Secretary Jonathan Reynolds – but only pledged to cap corporation tax, the levy paid by businesses on profits, at 25% for the next five years.
There is also speculation over a potential rise in Capital Gains Tax, which is charged on profits made from the sale of an asset that has increased in value, such as second homes. However, Prime Minister Sir Keir Starmer told Bloomberg reports suggesting a rise as high as 39% were "wide of the mark", although he did not elaborate further.
The chancellor did hint that she might change the government's borrowing rules to free up billions of pounds more in spending for big projects.
"We do want to free up investment in those long-term responsible investments that we need to make, to unlock the private investment into our economy," she said.
New investment dealsSome of the new investment pledges from firms on Monday include:
£1.1bn cash injection into Stansted Airport by its owner Manchester Airports Group to expand the airport's terminal by a third, creating more than 5,000 jobs£279m from US pharmaceutical giant Eli Lilly to tackle "significant health challenges", such as obesity£20bn over the next five years from Australian firm Macquarie towards various infrastructure projects including an electric car charging network. Macquarie has been blamed for saddling Thames Water with unsustainable debts when it was its biggest shareholder£1bn confirmed by DP World to create 400 new jobs and make London Gateway the UK's largest container port within five years. The commitment had looked to be in jeopardy after Transport Secretary Louise Haigh called on people to "boycott" DP World's subsidiary P&O Ferries over their past treatment of staff – comments which were later rebuked by the prime minister