Britain’s Chancellor of the Exchequer Mr Gordon Brown said today he would rise Britain's national insurance payroll tax, the government's number two earner, from April next year to fund improvements in the health service.
Presenting his annual budget to parliament, Mr Brown also said he would freeze personal income tax allowances for everyone except pensioners.
From April next year, there will be an additional one per cent national insurance contribution from employers, employees and the self-employed on all earnings above £4,615 sterling, he said.
For the year 2003-4, there will be a freeze of the non-pensioner income tax personal allowance and national insurance thresholds at £4,615, he said, adding that all other National Insurance and income tax allowances would be indexed in line with inflation.
Mr Brown said that the two tax changes, aimed at overhauling Britain's ageing and inefficient health system, would mean that a person earning the medium income of £21,400 p a year, or £410 a week, would pay an extra £3.70 a week.