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The amount employers pay in national insurance is set to rise in next week’s budget to raise money for public services, Sky News understands.

Reports have suggested it could be increased by up to two percentage points and will – in part – be used to help fund the NHS.

A government source told Sky News: “There is a universal consensus that the NHS needs more money.

“That means asking businesses to help out.

“The choice is investment versus decline. She [Rachel Reeves] is choosing not to ask working people to pay the price for their [Conservatives’] failures.”

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According to The Times newspaper, Chancellor Rachel Reeves is also expected to make a ­significant cut to the earnings ­thresholds at which employers start making national insurance contributions.

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The combined measures are expected to raise about £20bn and will represent the ­biggest tax rise in the budget.

The burden will reportedly fall entirely on the private sector, with public sector ­employers such as government departments and the NHS being reimbursed by the Treasury to avoid cuts.

On Friday, much of the budget chat focused on Labour’s definition of a “working person”.

The party’s manifesto said it would not increase taxes on working people, including VAT, national insurance, and income tax.

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This has prompted repeated questions about who the government considers to fall under that umbrella and therefore would not impose tax rises on.

During a broadcast interview at a Commonwealth summit in Samoa, Sir Keir Starmer told Sky News he does not consider people who have an income from assets such as shares of property to be working people.

“They wouldn’t come within my definition,” he said.

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Reacting to questions from journalists, Ms Reeves said the prime minister is a “working person”.

Speaking to LBC, she said: “The prime minister gets his income from going out to work and working for our country.

“He’s a working person. He goes out to work.”

Treasury minister James Murray told Sky News that “a working person is someone who goes out to work and who gets their income from work”.

Pushed further on whether a working person could also get income from shares or property, Mr Murray added: “We’re talking about where people get their money from, and so working people get their money from going out to work.

“And it’s that money that we’re talking about in terms of those commitments we made around income tax, around national insurance.

“That’s what’s important to focus on, where people are getting their money from, getting their money from going out to work.”

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What’s behind Starmer’s reset?

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What's behind Starmer's reset?

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As MPs return to Westminster for a packed autumn term, will the prime minister be back with a bang?

Sky News’ Sam Coates and Politico’s Anne McElvoy discuss Keir Starmer’s priorities as the so-called “reset week” begins.

There’s chatter around No 10 of a staffing restructure but could this impact the government’s message and delivery of its missions?

Back in the Commons, the home secretary will lay out the government’s plans to restrict family members from joining asylum seekers.

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What to expect with US crypto policy as Congress comes back in session

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What to expect with US crypto policy as Congress comes back in session

What to expect with US crypto policy as Congress comes back in session

According to some Republican lawmakers, the first crypto-related priority in the Senate will be to pass legislation for market structure.

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Sir Keir Starmer’s ‘Mr Fixit’ is likely to be a recipe for conflict

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Sir Keir Starmer's 'Mr Fixit' is likely to be a recipe for conflict

After a torrid time before the summer break, Sir Keir Starmer has reshuffled his inner circle again on the first day back. 

This has become something of a habit.

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Although none of the Number 10 team are household names or public figures, the tally of those cycling through the top jobs is worth noting.

As of now, he’s had four chiefs of staff – the incumbent returning to the job, two cabinet secretaries with a third rumoured to be on the way and five directors of communications – a job that routinely fails to last a year these days.

The lesson this tells us is that when there’s blame to go around, Sir Keir is happy to apportion it to his closest aides.

In an interview today, the prime minister was clear that these changes are about moving to a new phase of government, more focused on delivery.

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A delivery phase implies legislation completed and a focus on implementation. Bluntly, this is not the case or an accurate assessment of the job that now needs to be done.

The autumn term is not about implementation.

It’s about filling the £20bn to £40bn black hole we expect to emerge in the autumn budget, as well as continuing to deal with an uncertain world globally, and deciding on massively tricky domestic issues like reform of special educational needs and whether to revisit welfare reform.

We are still at the “big choices” section of this parliament, not the delivery phase.

The big choice in Sir Keir’s reset on Monday has been to bring in his own Mr Fixit into Downing Street.

He chose a mid-level cabinet minister, Darren Jones – until today the number two in the Treasury – and has parachuted him into his office to oversee policy.

This is an appointment, I’m told, that was pushed and encouraged by Rachel Reeves because of Mr Jones’ role in the spending review.

As chief secretary, Mr Jones is meant to have gone item by item through every department’s budget. He knows where the financial bodies are buried and will be a major alternate source of advice for Sir Keir to individual cabinet ministers.

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This is undoubtedly a recipe for conflict. There are already some around the cabinet table who found Mr Jones’ style a touch brusque. His fans say this is part of why he is effective: he is prepared to challenge what he’s told, is an independent thinker and unafraid to challenge big beasts.

He will now play this role permanently, on behalf of the prime minister, and structurally, this means he is bound to be disliked by several of these colleagues who will no doubt, in time, seek to undermine him, just as he will challenge them and have the last word with Sir Keir.

No matter that some might be surprised at the choice, as a fiscal and reforming hawk, since few would put him on the same ideological wing of the party as the prime minister. He is also a late joiner to the Starmer project, although joining in opposition spent years longer than some as chair of the business select committee rather than taking more junior roles.

This is now immaterial. He is responsible for making Sir Keir’s government work in practice. His colleagues could do worse than to sincerely wish him good luck and leave him to it, as there is a great deal to be done.

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