Rachel Reeves should end national insurance loophole for law firms
As reported in the Law Society Gazette in November last year, closing this NI 'loophole' could have raised £4bn from just the four 'magic circle' LLP law firms. This would seem compatible with Labour's manifesto pledge not to raise tax or NI on workers, but maybe this would upset too many of Keir Starmer's rich lawyer cronies?
The change seems to have been widely expected last year, but quietly dropped without trace. Unless there's a very good reason why this shouldn't be implemented (in which case, let's hear it), I would strongly urge Starmer and Rachel Reeves to reconsider this decision.
This strikes at the heart of economic justice. The current system favours the wealthy and well-advised – including former colleagues of Starmer in elite legal firms – while ordinary working people are asked to carry more of the burden.
If Labour's economic credibility hinges on fairness and responsibility, then this is exactly where Reeves should be looking – not at further cuts at the expense of the majority of taxpayers and those in most need.David ReedTaunton, Somerset
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The Independent
an hour ago
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