National insurance hike: Boris could SCRAP rise as Cabinet turn on PM over tax rise

HomeNews

National insurance hike: Boris could SCRAP rise as Cabinet turn on PM over tax rise

The Prime Minister is coming under increasing pressure to scrap his plans for the 1.25 recent rise due to take effect in April due to the current c

'Time to fatten the calf!' German media mock Boris Johnson in Brexit tirade
Boris Johnson to make important statement on Russia TODAY as Putin's troops cross border
'That's miserable!' Rees-Mogg confronts Kay Burley over coverage of Boris booing


The Prime Minister is coming under increasing pressure to scrap his plans for the 1.25 recent rise due to take effect in April due to the current cost of living crisis. Tory MPs fear the rise will cripple households across the economy and risks alienating voters who the party will rely on at the next election.

MPs begrudgingly voted through the national insurance rise last autumn in order to pay for Mr Johnson’s social care plan.

But the policy broke a manifesto pledge made by the Conservatives in 2019 not to increase the tax rate.

With rising energy bills, a sharp increase in council tax, and inflation sitting at more than five percent, even ministers are now urging for the plans to be scrapped.

One said last night there would be “no objection” from anyone in the Cabinet if rise did not go ahead.

READ MORE ON OUR BORIS JOHNSON LIVE BLOG

“If the Chancellor proposed to the Cabinet that he wanted to cancel the national insurance contributions rise, there would be no objection to it,” they told the Daily Mail.

“It is the wrong time to be raising taxes.

“We need to have a clear recovery from Covid before we start working out what we want to do about the fiscal balance.”

While the increase is being introduced to fund Mr Johnson’s social care plan, which he promised to deliver on the steps of Downing Street after winning the last election, the minister suggested even the Conservative leader would support scrapping the current funding model.

They described the national insurance hike as “very much a Treasury policy”, adding: “The ball is very firmly in the Chancellor’s court.”

Following the fallout from allegations of illegal gatherings in Downing Street during the pandemic, Mr Johnson is being urged by his allies to reassert his authority by focusing on issues that matter to voters.

READ MORE: ‘No need for tax rises!’ Rishi money claims torn apart by furious MP

“I would much rather that we didn’t have to do it,” he told Times Radio before giving his support to the policy.

Education Secretary Nadhim Zahawi refused three times this morning to rule out supporting the scrapping of the rise.

However, he said increasing national insurance contributions to pay for social care is “the right thing to do”.

Mr Zahawi added that if the policy had unintended consequences then it would be reviewed at a later date.

He told BBC Radio 4’s Today programme: “We will of course make sure we review any policy we introduce – if it is not working, then we will look at it.

“I absolutely believe it is the right thing to do.”

A Government spokesman said last night: “We’ve taken decisive and historic action, with our health and social care levy due to raise around £13billion a year.

“This will benefit people up and down the country.”



COMMENTS

WORDPRESS: 0
DISQUS: 1