National Insurance tax rise could get WORSE -PM pushed for even bigger crippling hike

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The Prime Minister is expected to unveil his plans to overhaul the social care system as soon as next week. Mr Johnson favours increasing national insurance (NI) to fund the changes.

The Conservative leader wants to rise NI by one percent to cover the social care bill.

Express.co.uk understands Mr Johnson had been eager to announce his plan before Parliament broke up for the summer, but was forced to delay any decision due to continued splits on the issue between the Treasury and Health Department.

Just days before he is now due to unveil his proposals, it is thought discussions are still “live”, with no final decision made on the amount the tax will rise by.

Health Secretary Sajid Javid is thought to have been pushing for an NI rise of as much as two percent.

Two Government sources told The Times Mr Javid believes the £10billion that would be raised by a one percent rise would not be enough.

Mr Javid believes the NHS backlog due to the pandemic means extra funding is needed not only for social care but also for the health service.

A two percent increase would mean someone on a salary of £20,000 a year would be forced to hand over an extra £208 a year to the taxman.

Meanwhile, someone on a salary of £40,0000 would be forced to give an extra £608 to Her Majesty’s Revenue and Customs.

Standing on the steps of Downing Street after winning the election, Mr Johnson claimed he had a plan to tackle social care.

However, almost two years later and No10 has not yet outlined the proposals.

Any tax increase will be met with backlash after the Conservatives pledged not to raise the rate of income tax, VAT or national insurance in their 2019 manifesto.

It said: “We promise not to raise the rates of income tax, National Insurance or VAT.”

Another line added: “We not only want to freeze taxes but to cut them too.”

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When asked if there could be no national insurance hike, Business Secretary Kwasi Kwarteng told Sky News in July: “That’s what it says in the manifesto, I don’t see how we could increase national insurance.

“But you know things have been very flexible over the last 18 months, we’ve lived through an unprecedented time, we’ve been spending huge amounts of money that we never thought was possible and it’s up to the Chancellor and the Treasury, and the wider Government, to decide a budget.”

It is thought while Mr Javid is urging the Prime Minister to increase the NI rise to two percent, five members of the Cabinet are against any rise at all for fear of the fallout if they break their election pledges.

Last night the influential TaxPayers’ Alliance warned the Government against the increases.

Chief executive John O’Connell said: “This tax hike on working people would fly in the face of all the PM’s promises.

“Suggesting this rise is the only sustainable solution for social care is smoke and mirrors.

“Receipts will end up being used for day-to-day spending, while taxpayers will be left paying the highest bills in a generation.

“Taxpayers will not tolerate being hoodwinked into yet more Tory tax rises.”

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