NI levy is harmful, PM told

THE National Insurance hike is going to stifle employment and clobber families, according to the Government’s own analysis.

An impact assessment by HM Revenue and Customs for the Treasury warned that the 1.25 per cent rise will hurt those who are only just about managing financially.

The leaked document comes days after the £36billion plan to boost the NHS and social care, due to take effect next April, was approved.

The new levy is likely to “have a significant macro-economic impact”, the analysis says, with consequences “for earnings, inflation and company profits” as well as “decisions around whether to incorporate or not”, and “decisions around wage bills and recruitment”.

A government spokesman insisted the levy was “fair, necessary and proportionate”.

MPs in red wall seats have said the move has caused a constituent backlash already.