Despite the Cabinet schism, Rishi insists on increasing NI.
RISHI Sunak has stated that despite a Cabinet schism over the plan, he will go ahead and increase National Insurance.
To help alleviate the looming cost-of-living crisis, Commons Leader Jacob Rees-Mogg has called for the April tax increase to be repealed.
However, in an apparent dig at his colleague, the Chancellor stated that “ducking difficult decisions” would be irresponsible.
Mr Sunak stressed that he understands “people’s anxiety and concern about rising prices and inflation,” but argued that the 1.25 percent increase is necessary to maintain the NHS’s stability.
“If you take a step back and look at why we’re in this situation, it’s because we’re facing unprecedented levels of backlogs in the NHS, and we as a government don’t think it’s acceptable; we don’t want families to wait years and years for the treatment they require,” he said.
During Wednesday’s Cabinet meeting, Mr Rees-Mogg urged Boris Johnson to drop the tax hike challenge, but allies insist the Commons Leader is a staunch supporter of the Prime Minister.
Conservatives “have always believed in fiscal good sense,” Mr Rees-Mogg told MPs yesterday, and “recognized that taxpayers’ money must be spent wisely.”
He did say that there is “no magic money tree,” but he avoided discussing the plan to raise NI contributions.
Mr Johnson said yesterday that the new health and social care levy will be “very important for the NHS to clear these backlogs, allowing them to deal with Covid right now and catch up.”
However, economists predict that the average family will be hit by £1,200 in April as a result of higher energy bills and tax hikes.
When the price cap is increased, bills are expected to rise by around £500.
Customers will be charged an additional £100 to cover the costs of many of the country’s failed energy companies.
Income tax threshold freezes will cost around £600 per household when combined with the NI increase.
However, Transport Secretary Grant Shapps stated that the decision on Northern Ireland had already been made in a group setting.
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He insisted that the tax strategy is a “very, very good case” for addressing the NHS’s coronavirus backlog and overhauling social care.
“I think everyone will agree that there is a very, very good case for both catching up with the,” he said.
“Brinkwire News Summary.”