Boris Johnson has admitted that raising National Insurance breaks a Conservative manifesto pledge after confirming that the 1.25 percentage point tax increase aimed at funding the NHS and health and social care reform will go ahead.
Announcing the hike, he told the House of Commons that “a global pandemic was in no-one’s manifesto” either, before telling a Downing Street press conference that breaking his 2019 pledge on taxation was necessary to keep his promises to be fiscally responsible and fix health and social care.
Asked at the press conference whether he would rule out any future sudden tax hikes, the PM declined to do so – saying that it would be “totally wrong” for him to comment.
“What I can tell you is that there are not many people in the Conservative Party who are more dedicated to cutting down on taxes than the three people standing before you today,” he added, referring to himself, Chancellor Rishi Sunak and Health Secretary Sajid Javid.
Initially the levy, which is set to be introduced in April 2022, will be paid by employees and the self-employed and will work out at around £5 per person each week. From April 2023, National Insurance will return to its current rate but a ‘Health and Social Care Levy’ will appear on pay slips, including those of pensioners who don’t pay NI.
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Johnson says Scotland will receive additional £1bn amid tax hike backlash
Boris Johnson has said that Scotland will receive more than £1 billion as he announced plans to raise taxes to pay for social care reform.
The move has, however, drawn criticism from the SNP with Commons leader Ian Blackford, who likened the hike in National Insurance and future health and social care levy to a poll tax.
“By raising this levy across the UK, the Tories are taxing Scottish workers twice – forcing them to pay the bill for social care in England as well as at home in Scotland,” he said.
“This is the Prime Minister’s poll tax on Scottish workers to pay for English social care.”
Boris Johnson warned his £12bn-a-year tax raid will fail to end social care crisis, as Tory MPs back plan
Social care leaders are warning that Boris Johnson’s £12bn-a-year tax raid will fail to end the crisis that has left 1.6 million elderly and disabled people without help, after most of the cash was diverted to the NHS.
Even as the prime minister’s manifesto-busting plan appeared to win over Tory MPs – who are expected to back it in a rushed vote on Wednesday – it was met with an angry backlash from councils and charities.
They warned local authorities would continue to be starved of the billions needed to provide adequate care for people in their own homes, a verdict backed by the respected Institute for Fiscal Studies (IFS).
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Starmer: NI hike will hit renters, young people and low-paid the hardest
Labour leader Keir Starmer has accused the Prime Minister of hitting young people and low-paid workers hardest with his plan to increase National Insurance.
Sir Keir also claimed that the hike is unfair to renters who will pay more if they are working full time jobs while their landlords will not have to pay additional tax on their properties.
“11 years of Tory unfairness continues,” he wrote on Twitter.
Majority of young people believe NI hike is unfair, poll finds
The majority of young people believe that raising National Insurance to pay for social care is unfair, while most over-65s support the move, YouGov polling suggests .
In total, 44 per cent of people are in favour of the tax increase confirmed today by the prime minister, while 43 per cent oppose it, the pollsters say.
Among 18-24 year olds, 62 per cent told YouGov that they don’t think the hike is fair, as did 54 per cent of 25-48 year olds. By contrast, two thirds of people over 60 said that they believe the move is fair.
Johnson: Tax rise is ‘right, reasonable and responsible’
Boris Johnson has said that introducing a health and social care levy is the “right, reasonable and responsible” thing to do.
In a video message shared to Twitter, the PM said that the tax hike will fund a “once in a lifetime, once in a generation” to “fix” the NHS and social care.
Labour leader Keir Starmer, on the other hand, characterised the tax rise as a “broken promise” and accused the PM of failing to present a plan on how he proposes to fix social care.
Government pulls plans for imminent vote on controversial universal credit cut
Boris Johnson’s government has pulled Labour’s plans to hold an imminent vote on the controversial cut to universal credit payments — just weeks before the £20-per-week uplift ends.
Instead, the government announced it was earmarking time on Wednesday for a separate vote on the newly announced health and social care levy, which flouts a key Conservative election manifesto pledge.
Labour had been scheduled to hold an opposition day debate on the issue tomorrow, calling on the government “to cancel its planned cut to universal credit” from the end of September 2021.
It was not immediately clear whether the vote would be rescheduled before the universal credit payments are reduced, but the Commons leader Jacob Rees-Mogg is expected to update MPs on Thursday.
Read more from Political Correspondent Ashley Cowburn:
PM refuses to be drawn on possible Cabinet reshuffle
Boris Johnson has refused to say whether or not he will reshuffle his Cabinet in coming days amid speculation that senior ministers such as Dominic Raab and Gavin Williamson could lose their current positions.
The Prime Minister was asked by multiple journalists about reports that key roles could change hands at a Downing Street press conference, but failed to answer these questions.
Towards the end of the session, he said that he had avoided discussing “more political matters” because his focus for the briefing was to discuss fixing NHS backlogs and reforming social care.
The Sunday Times reported that a Cabinet reshuffle could take place this week. Downing Street has previously said there were “no plans for any reshuffle”.
Tory MP says he needs ‘more detail’ to support NI plan
Conservative MP Stephen McPartland has indicated that he may not support ministers’ decision to raise National Insurance.
Calling the move “a tax on jobs”, the Stevenage MP tweeted that he would need “much more detail” to even consider supporting the plan.
MPs are set to vote on the 1.25 percentage point increase in parliament tomorrow.
Significant disruption to school year still possible, warns education minister
Significant disruption to education could still happen this academic year, according to a government minister.
Nick Gibb told the education select committee that the government is “trying to avoid” this situation.
Children no longer have to isolate after coming into contact with a Covid case, unlike during the last academic year.
Hundreds of thousands of students were off school as they were self-isolating as the summer holidays approached.
Read more from Zoe Tidman:
