Former Brexit chief urges PM to scrap planned national insurance rise

‘Kill off tax hike’: Former Brexit chief Lord Frost urges Boris Johnson to scrap planned National Insurance rise, saying it was ‘never necessary or justified

  • Lord Frost declared the tax hike must be scrapped to help economic recovery
  • The PM’s former Brexit chief insisted the £12billion tax grab was not needed
  • ‘The tax rises this April were never necessary or justified,’ Lord Frost declared
  • His remarks pile pressure on the Prime Minister and Chancellor to ditch the rise
  • April’s national insurance hike must be scrapped to help the economic recovery, Lord Frost declared last night.

    In a significant intervention, the Prime Minister’s former Brexi chief insisted the £12billion tax grab was not needed.

    Il pari, who resigned last year amid concern over the direction of Boris Johnson’s administration, said scrapping the increase was vital in the face of the cost of living crisis.

    ‘The tax rises this April were never necessary or justified,' Ha aggiunto. ‘Given the new pressures on energy prices and inflation, it’s even more important now to scrap these tax increases and focus on getting the economy growing again. Allowing people to keep more of their own money is always the best way.’

    Lord Frost’s remarks pile the pressure on Chancellor Rishi Sunak and Mr Johnson to ditch the rise. He has already implored the PM to reset his Government along traditional Conservative lines to avoid electoral defeat.

    Britain's Chancellor of the Exchequer Rishi Sunak and Britain's Prime Minister Boris Johnson are under pressure to ditch a planned tax rise

    Britain’s Chancellor of the Exchequer Rishi Sunak and Britain’s Prime Minister Boris Johnson are under pressure to ditch a planned tax rise

    Britain’s leading economic think-tank last night said delaying the national insurance hike to ease the cost of living crisis was affordable. The Institute for Fiscal Studies believes there is ‘headroom’ to hold off for at least a year without a major impact on plans to boost funding for health and social care.

    Business leaders have warned that millions of households face a double blow from the move announced in September.

    This is because many firms will be forced to lift prices to cover the cost of having to pay higher NICs for their employees. Di conseguenza, families will face both higher personal taxes and paying more in the shops.

    In a television interview yesterday, Boris Johnson appeared to leave the door ajar to a delay by refusing eight times to explicitly commit to going ahead in April.

    He merely said: ‘What I’m telling people is that if you want to fund our fantastic NHS, we have to pay for it. And this Government is determined to do so.’

    There is now growing pressure on ministers to rethink the rise, with Conservative MPs and campaigners also warning it would worsen the cost of living crisis facing millions of households.

    Britain¿s leading economic think-tank last night said delaying the national insurance hike to ease the cost of living crisis was affordable. The Institute for Fiscal Studies believes there is ¿headroom¿ to hold off for at least a year without a major impact on plans to boost funding for health and social care (la cui identità non è stata rivelata per motivi di sicurezza)

    Britain’s leading economic think-tank last night said delaying the national insurance hike to ease the cost of living crisis was affordable. The Institute for Fiscal Studies believes there is ‘headroom’ to hold off for at least a year without a major impact on plans to boost funding for health and social care (la cui identità non è stata rivelata per motivi di sicurezza)

    Paul Johnson, the head of the IFS, ha detto ieri sera: ‘There is certainly the fiscal room to say “Let’s not do it this year, let’s leave it until next year”.

    ‘If your concern is the cost of living issue this year, then economically delaying from this year for next isn’t going to have a major effect on what you’re trying to achieve, which is to pay for health and social care.

    ‘But my concern would be having announced it in September that if you delay it a year, is it really credible that you are going to do it next year? When you put it all together there will be a reduction in living standards.

    ‘Clearly the national insurance hike doesn’t affect the people on the very lowest incomes, on benefits. The issue is that it hits people on modest and middle incomes. And they’re also suffering from inflation, and probably not getting wage rises in line with that.’ Since the Government announced the rise inflation has risen to its highest level in 30 anni.

    Experts also predict that interest rates will increase significantly, adding hundreds of pounds to mortgage repayments.

    The national insurance hike will cost those on £30,000 around £255 over the course of a year, while someone earning £50,000 will lose around £505.

    An Institute of Directors survey found that four in ten businesses would raise prices to offset their higher national insurance bills.

    Others said they would be forced to cut staff, lower wages or absorb the costs of the tax hike.

    The national insurance hike will cost those on £30,000 around £255 over the course of a year, while someone earning £50,000 will lose around £505 (la cui identità non è stata rivelata per motivi di sicurezza)

    The national insurance hike will cost those on £30,000 around £255 over the course of a year, while someone earning £50,000 will lose around £505 (la cui identità non è stata rivelata per motivi di sicurezza)

    The IoD’s chief economist Kitty Ussher said the tax rise threatened the small and medium-sized businesses that are the ‘growth engine’ of the economy. Lei disse: ‘Our data shows that the tax rise is itself inflationary at a time when prices are already rising fast.

    ‘Faced with the forthcoming increase in the cost of employing their teams, many businesses are planning to raise prices to offset the cost and/or rein in on their hiring plans.’

    Yesterday former Cabinet minister David Davis demanded a rethink. He said the rise would remove about 10 per cent of the disposable income of ‘ordinary families’ and fuel inflation. The Federation of Small Businesses says the national insurance rise of 1.25 percentage points could wipe out 50,000 lavori.

    Its chairman Mike Cherry said: ‘Scrapping the hike would be a huge relief for business, at a time when good news is thin on the ground.

    Families will face both higher personal taxes and paying more in the shops if the planned rise goes ahead in April

    Families will face both higher personal taxes and paying more in the shops if the planned rise goes ahead in April

    ‘The jobs tax hike will hit everyone, self-employed and employers alike. Once the rise is in effect, it will impact small businesses’ ability to grow and take on staff, and mean yet more inflationary pressure, as they are forced to pass on higher costs to customers.’

    The Confederation of British Industry said: ‘Government must be wary of putting further pressure on businesses who will be central to the recovery, particularly by making it more expensive to recruit.’

    Emma McClarkin of the British Beer and Pub Association said: ‘After a devastating winter for the sector and another setback in their recovery, the planned increase in national insurance from April adds yet another additional cost when the focus needs to be on providing pubs and brewers support to enable a strong and sustainable recovery.’

    Don’t mention tax rises! Ancora e ancora, how PM dodged it

    By HARRIET LINE and DANIEL MARTIN FOR THE DAILY MAIL

    Boris Johnson yesterday appeared to open the door to delaying the controversial rise in national insurance.

    Amid intense pressure for a rethink, the Prime Minister repeatedly refused to commit clearly to the planned increase in April.

    anche se in seguito lo disse di fronte a tanta morte e sacrificio di sé, eight evasions

    Reporter: Can you guarantee that national insurance will go up in April this year as planned?

    pomeridiano: What we’ve got to do is look at all the ways we can address cost of living

    Reporter: That doesn’t sound like a guarantee of national insurance going up?

    pomeridiano: All we can do to address the cost of living issues for people. So it’s the cost of fuel

    Reporter: So that tax rise could be shelved then?

    pomeridiano: It’s making sure that we deal with inflation by getting people into work, dealing with problems in the supply chains, getting people off welfarehelping to get our economy moving smoothly again.

    Reporter: So no guarantee of that tax rise?

    pomeridiano: Just on that specific issue: look at where we are, look at what we are investing in, and don’t forget that what I think is the number one priority for people in this country. È, sai, the NHS has done an amazing job but it has been under terrific strain.

    Reporter: But on the tax rise, can you guarantee that national insurance will go up?

    pomeridiano: Listen to what I’m saying. What I’m telling you is we’ve got to put that money in, we’ve got to make that investment in our NHS. We’ve just been looking at fantastic robotic-assisted surgery, made in Cambridge, an amazing British development.

    Reporter: Will that money come through a national insurance rise though, primo ministro?

    pomeridiano: Those machines are not cheap. Forty-four thousand more staff in our NHS

    Reporter: But will the money come through a national insurance rise?

    pomeridiano: …than there were last year.

    Reporter: Is that guaranteed now – the national insurance rise?

    pomeridiano: What I’m telling people is that if you want to fund our fantastic NHS, we have to pay for it. And this Government is determined to do so.

    Annuncio pubblicitario

    Senior Tory MPs and business chiefs have joined the Daily Mail in urging the Government to scrap the plan and a top minister, who asked not to be identified, said the whole Cabinet would back a delay.

    They fear the 1.25 percentage point increase could worsen the cost of living crisis as families face spikes in council tax, energy bills and inflation.

    It will raise £12billion a year and was originally intended to help fund health and social care, but for the first three years most of the money will go towards clearing the post-Covid NHS backlog.

    Yesterday Mr Johnson was asked eight times in a Sky News interview to commit to going ahead with the rise in April.

    But he refused to do so, instead saying only that the Government was ‘determined’ to ‘fund our fantastic NHS’.

    Egli ha detto: ‘What I’m telling you is we’ve got to put that money in, we’ve got to make that investment in our NHS.’

    After being pressed for the eighth time, the PM added: ‘What I’m telling people is that if you want to fund our fantastic NHS, we have to pay for it. And this Government is determined to do so.’ His spokesman later insisted it was the ‘right approach’ to tackle a ‘long-standing problem’.

    Yesterday former Tory Cabinet minister David Davis became the latest Conservative to demand a Government rethink.

    He told the BBC that raising national insurance would remove about 10 per cent of the disposable income of ordinary families and was based on the ‘wrong data’. He said it was ‘economically unwise’ because it created a ‘disincentive to work’, would penalise employers and would ‘hit the growth of the whole economy’ – making it unlikely to raise the £36billion forecast by the Treasury.

    Ha aggiunto l'onorevole Davis: ‘They didn’t knowthat by April we would have the highest inflation for 30 anni. They didn’t know that interest rates would be going up, that council tax would be going up, that fuel prices were about to rise by about £700 a year for an average family. Therefore they didn’t know quite what pressure there would be on ordinary people.’

    Opposition to the rise has been growing in recent weeks, with concerns that it will hit pay packets just as energy bills soar – and hamper small firms trying to recover from Covid disruption.

    Last night Lib Dem leader Sir Ed Davey backed the Mail’s campaign, detto: ‘This unfair tax hike in the middle of a cost of living crisis is bad economics and a disaster for millions of people.’ Labour accused the PM and Chancellor Rishi Sunak of ‘whacking up business and working people’s taxes at the worst possible time’.