Home Breaking News National insurance going ahead, says minister despite reports Boris is eyeing a delay

National insurance going ahead, says minister despite reports Boris is eyeing a delay

by LLB Reporter
28th Jan 22 10:44 am

Reports of Prime Minister Boris Johnson is considering delaying the increase of National Insurance contributions have been quashed after a minister told Sky News it’s “going ahead” in April.

Technology minister Chris Philp said funds are needed for the NHS and social care and the move is a “proportionate way” of finding the cash.

‘The money is needed”

“Yes, it is going ahead,” Mr Philp said when asked if the rise in April is “set in stone”.

Nigel May, partner at MHA, said: “The pressure on the Prime Minister to scrap the planned NI hike (also known as the Health and Social Care Levy) also shows how difficult it is to find acceptable ways to fund the NHS and social care. NI has a false reputation as a ring-fenced tax that pays for particular services, like pensions. This makes it a relatively acceptable form of taxation: people know what they’repaying for (or think they do).

“In 2021 the government piggybacked on this reputation to claim the Health and Social Care Levy, which is just a NI hike with a new name (in cost terms), would be tied specifically to social care costs to make it more acceptable to the public. Due to the Covid-19 pandemic there is massive support for the NHS and care services, so it might have been thought this tax rise would win support. The fact that it hasn’t shows how much difficulty the government is, and will be, infinding acceptable ways to raise revenue to support the NHS and social care in the coming years.”

 

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