UK Treasury considers taxing landlords' rental income to raise £2 billion for the budget.

The UK Treasury is considering a tax hike on landlords by applying national insurance to rental income, aiming to raise £2 billion for the upcoming autumn budget. This proposal, supported by some Labour MPs, targets "unearned revenue" and doesn't breach the party's pledge against raising VAT, income tax, or NICs, as it expands the income subject to NICs rather than increasing the rate. Chancellor Rachel Reeves faces a £41 billion shortfall in her goal to balance spending and tax receipts by 2029-30.