Rishi Sunak is facing opposition for his intention to raise National Insurance: ‘It’s a terrible notion,’ says the narrator.
RISHI SUNAK may be considering raising National Insurance contributions to help pay for a revamped social care system, but this has sparked controversy.
Last month, it was reported that ministers regarded an increase in National Insurance premiums as a possible way to raise finances in the aftermath of the pandemic’s economic hardship. Fears of this arose after Prime Minister Boris Johnson failed to exclude out increases in income tax or National Insurance payments during a press conference. This is despite the Conservative Party’s 2019 platform promise that no increase will be made.
The Resolution Foundation’s chief executive, Torsten Bell, said that tax increases are necessary, but that an increase in National Insurance contributions would be unfair.
He claimed that this would leave those who were severely afflicted by the pandemic to bear the financial burden.
“Taxes will be needed to provide excellent social care, but raising National Insurance is a poor way to raise the monies required,” Mr Bell added. In comparison to a more equitable increase in income tax, it is a tax that disproportionately burdens younger and lower-paid workers.
“It is entirely beyond me why we would target a tax increase on the ones who have been severely hurt by the economic burden of this pandemic while exempting elderly and richer individuals.”
Following former Health Secretary Jeremy Hunt’s support for an income tax hike, he made his remarks.
Mr Hunt stated that a 1% increase would create £6 billion in revenue, which would be used to address critical hospital backlogs and other healthcare needs.
According to Whitehall insiders, authorities are considering raising National Insurance, but this would violate the Conservatives’ “triple tax lock” manifesto commitment.
“The appeal of a health and social care charge is that it would cover the NHS backlog in the near term while also funding badly needed changes in the social care system in the medium to long term,” Mr Hunt continued.
“In all areas, it would also be clear about the need for resources and capacity.
“The most honest solution is a health and care premium, with a rational debate about whether we’ll fund the new dementia drugs on the way, improve our cancer survival rates to those of Denmark and Australia – and proper social care – and how much of that is about funding [versus]innovation/efficiency.”
Conservative MPs, on the other hand, were opposed to the idea of a National Insurance hike.
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