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National Insurance rates will be increased 0.5% for both employees and employers from April 2011.
Chancellor Alistair Darling's announcement means that the employee's NI rate will rise from 11% to 11.5% and the employer's NI rate from 12.8% to 13.3%.
The increase is thought to be the Government's most significant move to reclaim the spending on incentives to help counter the financial downturn.
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