The think tank IPPR has proposed shifting more of the UK tax burden onto wealth, property and older generations ahead of the 26 November Budget. Its ideas include extending the 2% National Insurance surcharge to earning pensioners and replacing stamp duty and council tax with a single proportional property tax of around 0.65%. These are proposals, not government policy.
TL;DR · LAST REVIEWED The think tank IPPR has proposed shifting more of the UK tax burden onto wealth, property and older generations ahead of the 26 November Budget. Its ideas include extending the 2% National Insurance surcharge to earning pensioners and replacing stamp duty and council tax with a single proportional property tax of around 0.65%. These are proposals, not government policy.
- The Institute for Public Policy Research (IPPR), a think tank, set out the proposals in a paper by economist Ben Ansell; they are not government policy.
- One idea is to extend the 2% National Insurance surcharge, currently paid by under-65 employees on earnings above £50,270, to pensioners who keep working.
- Another is to replace both stamp duty and council tax with a single proportional property tax of around 0.65% of value.
- Further ideas include a tax on amateur gamblers' net winnings (estimated to raise £1 to £3 billion) and closer monitoring of crypto asset sales.
- The paper argues an ageing population will drive most of the extra fiscal pressure on the UK, with a Budget gap estimated at £20 to £30 billion.
- The Chancellor delivers the Budget on 26 November 2026; none of these measures has been announced by the government.
KEY FACTS
- The Institute for Public Policy Research (IPPR), a think tank, set out the proposals in a paper by economist Ben Ansell; they are not government policy.
- One idea is to extend the 2% National Insurance surcharge, currently paid by under-65 employees on earnings above £50,270, to pensioners who keep working.
- Another is to replace both stamp duty and council tax with a single proportional property tax of around 0.65% of value.
- Further ideas include a tax on amateur gamblers' net winnings (estimated to raise £1 to £3 billion) and closer monitoring of crypto asset sales.
- The paper argues an ageing population will drive most of the extra fiscal pressure on the UK, with a Budget gap estimated at £20 to £30 billion.
- The Chancellor delivers the Budget on 26 November 2026; none of these measures has been announced by the government.
What the IPPR has proposed and why
The Institute for Public Policy Research (IPPR), a think tank, has proposed shifting more of the UK tax burden onto wealth, property and older generations. In a paper by the economist Ben Ansell, it argues Britain's tax system leans too heavily on younger workers and should be rebalanced, citing an ageing population and a Budget gap estimated at £20 to £30 billion. These are proposals, not government policy.
The paper argues that an ageing population will drive most of the extra fiscal pressure on the UK in the coming years. It suggests that the current system places a disproportionate burden on younger workers through taxes on income and consumption, while wealth and property are taxed less heavily. The proposals are designed to address this imbalance ahead of the Budget, which the Chancellor will deliver on 26 November 2026.
None of the measures has been announced by the government. They remain recommendations from the think tank for consideration in the wider debate about how to raise revenue.
The pensioner National Insurance idea
One proposal is to extend the existing 2% National Insurance surcharge to pensioners who continue to earn. Currently, employees under 65 pay this surcharge on earnings above £50,270. The plan would mean working pensioners pay National Insurance on the same basis as younger employees.
Under current rules, the 2% surcharge applies to earnings above the upper earnings limit for employees below state pension age. The IPPR proposal would remove the age-based exemption, so that pensioners in work would contribute on earnings above the same threshold.
The proposal would not apply to the state pension itself, which is not classed as earnings for National Insurance purposes. It would only affect pensioners who continue to work and earn above the threshold.
The property tax idea
The paper proposes replacing both stamp duty and council tax with a single proportional property tax of around 0.65% of a home's value. Supporters of the idea argue it is simpler and fairer than the current system, which they say is outdated and unevenly applied.
Under the current system, stamp duty is paid when a property is purchased, while council tax is an annual charge based on property bands set in 1991. The IPPR argues that this combination is inefficient and regressive. A single proportional tax based on current property values would, in its view, be more transparent and consistent.
The proposed rate of around 0.65% would apply to the value of the property. The paper does not set out transitional arrangements or exemptions in detail, but it presents the change as a simplification of the existing system.
Other measures floated
Further ideas in the paper include a tax on the net winnings of amateur gamblers, which it estimates could raise £1 to £3 billion, and closer monitoring of crypto asset sales. It also suggests changes to commercial property transaction taxes.
The gambling tax would apply to net winnings from betting and gaming by amateur participants, rather than to the stakes themselves. The estimate of £1 to £3 billion is based on assumptions about the scale of activity and the rate applied.
The paper also calls for greater monitoring of crypto asset sales, arguing that gains from such assets are currently under-reported. In addition, it proposes changes to how commercial property transactions are taxed, though the details are less developed than the residential property plan.
What happens next and the reaction
The Budget is due on 26 November 2026. The proposals have drawn support from some commentators who argue the tax system needs rebalancing, and strong criticism from others who say they would penalise pensioners and homeowners. The government has not adopted them.
Supporters of the IPPR paper point to the ageing population and the need to broaden the tax base. They argue that wealth and property are undertaxed relative to income, and that the current system is unsustainable.
Critics argue that extending National Insurance to working pensioners would discourage older people from staying in work, and that a property tax based on value could create cash-flow problems for homeowners on modest incomes. Others question the estimates behind the gambling tax and the practicality of monitoring crypto assets.
The government has not announced any of these measures. The Budget on 26 November will confirm which, if any, of the proposals are taken forward.
Are the IPPR tax proposals government policy?
No. They are recommendations from a think tank, the IPPR. The government has not announced them; the Budget is on 26 November 2026.
Would pensioners pay National Insurance under the plan?
The proposal would extend the existing 2% NI surcharge to pensioners who keep earning, on earnings above £50,270; it would not apply to the state pension itself.
What is the proposed property tax?
A single proportional property tax of around 0.65% of a home's value, replacing both stamp duty and council tax.
When is the 2026 Budget?
The Chancellor is due to deliver the Budget on 26 November 2026, when any actual tax changes would be announced.
Who produced the proposals?
The Institute for Public Policy Research (IPPR), in a paper by the economist Ben Ansell.
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
Are the IPPR tax proposals government policy?
No. They are recommendations from a think tank, the IPPR. The government has not announced them; the Budget is on 26 November 2026.
Would pensioners pay National Insurance under the plan?
The proposal would extend the existing 2% NI surcharge to pensioners who keep earning, on earnings above £50,270; it would not apply to the state pension itself.
What is the proposed property tax?
A single proportional property tax of around 0.65% of a home's value, replacing both stamp duty and council tax.
When is the 2026 Budget?
The Chancellor is due to deliver the Budget on 26 November 2026, when any actual tax changes would be announced.
Who produced the proposals?
The Institute for Public Policy Research (IPPR), in a paper by the economist Ben Ansell.
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