The Treasury is examining a proposal under Chancellor Rachel Reeves to apply National Insurance contributions to landlords’ rental income, according to multiple press reports. Extending the employee-rate 8% levy to property earnings could raise about £2 billion a year, helping to close an estimated £40 billion hole in the public finances ahead of Reeves’s first Budget later this year. Rental income, along with savings and pension receipts, is currently exempt from National Insurance. Officials are said to view property income as a significant source of ‘unearned revenue’ that can be taxed without breaching Labour’s pre-election pledge not to raise the main rates of VAT, income tax or National Insurance for workers. Industry groups and property analysts warned the measure could discourage investment in the private-rented sector, reduce housing supply and push up rents. Commentators including former BBC journalist Andrew Neil called the projected revenue a ‘pittance’ relative to the potential market disruption, while landlord organisations described the move as economically counter-productive. Education Minister Stephen Morgan declined to rule the plan in or out, telling broadcasters that tax decisions would be set out in the Budget. Adam Corlett of the Resolution Foundation supported the change, arguing there is ‘no good reason why landlords should face lower tax rates than their tenants.’ The Treasury has not officially commented on the leaked discussions.