The Herald

No delay to tax rise as war adds to living cost

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THE UK Government is to press ahead with a controvers­ial tax rise despite the escalating cost- of-living, Michael Gove has confirmed.

The Levelling Up Secretary said the Government would not “do away with” the planned 1.25 per cent rise in National Insurance contributi­ons next month.

Chancellor Rishi Sunak is under growing pressure for Tory MPS to shelve the rise, as the war in Ukraine fuels the worst inflation in decades and record surges in energy bills.

He is due to set out a spring statement mini-budget on March 23.

Asked if Mr Sunak was going to cut people’s taxes, Mr Gove said: “No, what we have to do at the moment is to provide support in every way possible that is targeted.

“But behind your question may be a suggestion that we should do away with the National Insurance increase. No, we’re not doing that.

“We need that National Insurance increase in order to make sure that we can fund the NHS and social care to deal with the Covid backlog.”

Shadow business secretary Jonathan Reynolds said households were facing “the “worst collection of pressures” on living standards he had seen in his 12 years as an MP.

He had no “historical parallel for the kind of squeeze the British public are already enduring and are about to endure.

The SNP said the Tories must not “cynically hide behind Ukraine” to avoid addressing the cost of living crisis and there was “no excuse for inaction” from the Chancellor.

Glasgow MP Alison Thewliss said: “This Tory crisis has been a decade in the making.

“Rishi Sunak must not cynically use the war in Ukraine as cover for years of Tory failure.

“Instead of preparing a list of excuses, the Chancellor should be preparing a comprehens­ive package of support.”

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