Calls to axe planned national insurance rise grow

Calls to axe planned national insurance rise grow as new data suggests workers and companies are set to pay record amount this year

  • Taypayers have paid £129.6billion through National Insurance since April 2021
  • This is up £11.2billion from the same period in 2020-21, according to ONS figures
  • This is just short of the £12billion the Treasury plans to raise through the NI hike 
  • Rishi Sunak expected to increase NI by 1.25 percentage points in April this year
  • Tory MP John Redwood said the figures showed the planned NI hike can be axed 
  • British workers and companies are set to pay a record amount in national insurance this financial year, sparking fresh calls to scrap a hike in the tax due to come into force in April.

    Taxpayers have paid £129.6billion into the Treasury’s coffers through NI since April last year.

    This is up £11.2billion from the same period in 2020-21, according to data from the Office for National Statistics (ONS) – just short of the £12billion which the Treasury plans to raise through the NI hike.

    In the last full tax year, NI contributions raised an all-time high of £143billion, which economists think will be easily surpassed this year.

    Chancellor Rishi Sunak is planning to increase NI by 1.25 percentage points in April, in an effort to raise £12billion to help fund the NHS and social care

    Chancellor Rishi Sunak is planning to increase NI by 1.25 percentage points in April, in an effort to raise £12billion to help fund the NHS and social care

    The fresh figures from the ONS come amid growing calls to spike the NI hike, which the Daily Mail is campaigning for.

    Tory MP John Redwood said the figures show the Treasury ‘can afford to cancel the NI tax raise’. 

    Chancellor Rishi Sunak is planning to increase NI by 1.25 percentage points in April, in an effort to raise £12billion to help fund the NHS and social care. 

    But as the economy has bounced back from the pandemic, and tax revenues have risen, the Government has so far this year had to borrow less than expected – meaning Mr Sunak does have some room for manoeuvre.

    Tory MP John Redwood said the figures show the Treasury ‘can afford to cancel the NI tax raise'

    Tory MP John Redwood said the figures show the Treasury ‘can afford to cancel the NI tax raise’

    Isabel Stockton, a research economist at the Institute for Fiscal Studies, said that Mr Sunak ‘could certainly delay tax rises’, but that his decision to do so depended little on whether government borrowing came in lower than expected.

    She said: ‘Challenges in health and social care have in no way become less pressing.

    ‘If he decides to delay tax rises this spring, he will need to find other ways of dealing with these pressures.’ 

    Category:

    celex

    Tags:

    , , ,