PM and his Chancellor need to find more money to protect pensions and benefits
Rishi Sunak is considering expanding the top rate of income tax next week after the Treasury warned that more money was needed to protect pensions and benefits.
The Telegraph understands that raising the 45 per cent top rate, or lowering the £150,000 annual income threshold at which it kicks in are options now being discussed.
Such a move would be a dramatic reversal in position from September, when Liz Truss abolished the 45 per cent rate, before later reinstating it when the markets baulked at her plans.
The Telegraph can also reveal that the Treasury is looking at increasing the National Insurance rate paid by employers by 1.25 percentage points, despite a similar move being reversed by Ms Truss.