Politics

‘Go back to the drawing board!’ Boris and Rishi blasted over huge National Insurance hike

National Insurance rise is a 'tax on jobs' says Chandha

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The dig comes as the Prime Minister and Chancellor defended plans to go ahead with the controversial tax rise. The move to increase the tax will see an additional £12bn per year flow into the treasury coffers and has been described as “the right plan” by the Prime Minister.

However, not all Conservative Party members are happy with the move.

Many senior Tories have now warned that the party will come under scrutiny by voters who will be forced to tighten the purse strings as post-tax income shrinks as prices increase.

Speaking on Sky News, senior Tory backbencher Robert Halfon said he was in agreement with ministers that extra cash was needed to help the NHS deal with backlogs caused by the Covid crisis and to fund social care reforms.

Mr Halfon, who now chairs the House of Commons education committee stated: “There is an umbilical cord between the British people and the NHS, and they want that money spent,

“I also agree that we shouldn’t borrow to pay for this because all that does is defer tax rises and also puts pressure on interest rates.

“What I’m just asking the government to do is to go back to the drawing board and look at how they raise that money.

“I’ve suggested that the government looks at windfall taxes on big businesses, particularly oil companies, for example, who have been raking it in over the past couple of years.

“Perhaps increase capital gains tax as well, so we can raise those funds for the NHS without hitting low-income workers.”

But, in an article for The Sunday Times, Mr Johnson and Mr Sunak wrote: “We must go ahead with the health and social care levy. It is the right plan.”

Mr Halfon also questioned how the move would affect the Government in the polls, in particular as pressure mounts on the Prime Minister following the so-called party-gate incident.

He said: “Of course, people are struggling with the cost of living, so if they can’t afford to pay their bills that is hardly going to be very positive towards the Government.

“It depends on what the Government does in other measures to try and mitigate against that.”

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The backbencher urged Mr Sunak to seek alternative forms of funding to prop up the NHS and other vital infrastructures.

He said: “What I am asking the Government to do is to go back to the drawing board and look at how they raise that money,

“I have suggested that the Government looks at windfall taxes on big business, particularly oil companies for example who have been raking it in over the past couple of years.”

He also said: “Perhaps increase capital gains tax as well – so that we can raise those funds for the NHS without hitting low-income workers.”

Some Twitter users took to the social media platform to share what the rise in NI would mean to them.

Rubel said: “90 percent of the country will be close to the poverty line post-April,

“Rising energy prices + national insurance hike + 5 percent inflation.”

Janine Geography said: “We would also be hit twice.

“That, plus the increase in National Insurance, and the failure for salaries to keep up with inflation, will see us significantly worse off.

“Feeling cross, but really worried for those on minimum wage.”

Under the plans, employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance from April 2022 for a year.

After that, the extra tax will be collected as a new Health and Social Care Levy.

The changes to National Insurance will see an employee on £20,000 a year pay an extra £89 in tax.

Someone on £50,000 will pay £464 more.

From April, people earning under £9,880 a year, or £823 a month, will not have to pay National Insurance and will not have to pay the new levy.

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