PBR: Tax rise for everyone earning more than £20k

Everyone earning over £20,000 a year faces a tax rise from 2011.

Today's Pre-Budget Report revealed National Insurance will rise by 0.5% from 2011, meaning middle and high earners face tax rises. In April's Budget statement, the Chancellor unveiled an increase of 0.55% in NationalInsurance, and today's increase will come ontop of the existing levy. However, the minimum earnings limit for paying National Insurance has been increased, meaning no one earning less than £20,000 will see an increase in their contributions. The move is expected to raise around £3bn for the Treasury.