National Insurance hike will go ahead, Johnson and Sunak say
Some Tory MPs call for increasein April to be scrapped
AN INCREASE to National Insurance will be going ahead this April, Boris Johnson and Rishi Sunak have confirmed, despite grave concerns among Conservatives about the impact on the “cost of living crisis”.
The Prime Minister and Chancellor wrote in The Sunday Times newspaper yesterday that it is right to push ahead with the “progressive policy” which is designed to try and help clear the NHS backlog that has accrued during the Covid-19 pandemic.
Writing in the newspaper, Mr Johnson and Mr Sunak said: “We must clear the Covid backlogs, with our plan for health and social care – and now is the time to stick to that plan. We must go ahead with the health and care levy. It is the right plan.
“It is progressive, in the sense that the burden falls most on those who can most afford it.
“Every single penny of that £39bn will go on these crucial objectives – including nine million more checks, scans and operations, and 50,000 more nurses, as well as boosting social care.”
In April, National Insurance Contributions (NICs) due to rise by 1.25 percentage points for workers and employers. From 2023, it is due to drop back to its current rate, with a 1.25 per cent health and social care levy then applied to raise funds for improvements to care services.
There had been speculation that the tax rise – which is unpopular with a proportion of the Tory back-benches – could be delayed, as Mr Johnson tries to
shore up support amid the partygate scandal. The report by leading civil servant Sue Gray into the alleged lockdown-busting events held at the heart of Government had still not been handed to Downing Street as of yesterday morning.
The issue could determine Mr Johnson’s future in Number 10, with a number of Conservative MPs having already called for him to resign over the issue.
It was thought that a delay to the NICs increase, while other costs of living are soaring, could help win him more support in
the event of a no-confidence vote. Meanwhile, a former Conservative Deputy Prime Minister praised Mr Johnson’s commitment to NICs, but said he should now “face up to the consequences” and publish Ms Gray’s report
in full. Lord Heseltine said it was the “right decision”, adding: “If there’d been any change, the Prime Minister would have been seen to have been weak at the pressure of some of his colleagues.”
He told BBC Radio 4 yesterday: ”It seems to me that there is no grip.”
Lord Heseltine added: “The discipline seems to have broken down. It does reflect a malaise that partygate has created.
“My own view is very clear that the Prime Minister should now publish the Gray report in
full and face up to the consequences.
“The longer the speculation goes on, the more damaging and the more the feeling is growing that something is being fixed by the intervention of the police.”
The Institute for Fiscal Studies also suggested delaying or scrapping the increase could throw up an issue of credibility.
Director Paul Johnson told Times Radio yesterday: “It is going to raise something in the order of £14bn, which is a lot of money.
“In principle it is going to be
something that is important for the medium term, if you do it this year or next it doesn’t really matter terribly much.”
He added: “I think the problem is that having announced it – and as soon as things get a bit rocky you delay it until next year.
“Which remember, is a year nearer to a General Election. I am not sure how many people will believe you if you say you will do it next year.
“I think it is as much to do with the credibility of the announcement as it is to do with the fact that you need that money now.”
Publish the Gray report in full and face up to the consequences. Michael Heseltine’s advice for Boris Johnson.