Boris Johnson ready to increase planned tax hike to spur support among lawmakers – Henry’s Club

Treasury staff believe boris johnson He may be about to cancel – or delay – the National Insurance hike as he fights for the support of stunned Conservative lawmakers.

The Mail yesterday revealed that several Tory The MPs had urged the Prime Minister to reconsider it during their meetings regarding the Partygate scandal.

Last night it emerged that Treasury officials now understand Mr Johnson may have a change of heart.

Admittedly, they became more concerned when No. 10 refused to close questions about whether the tax hike could be halted in April.

In a television interview on Tuesday, the PM declined eight times to confirm that it would go ahead.

The Mail revealed yesterday that several Tory lawmakers had urged the prime minister to reconsider getting up during meetings with him over the Partygate scandal.

That pattern was repeated yesterday when he stressed the need for additional funding for the NHS, but declined to say the 1.25 per cent increase would continue for three months.

Meanwhile, his spokesman declined to guarantee that it would take effect in time, saying only that there were “no plans” to cancel it.

It is understood that no formal talks have taken place between the PM and Chancellor Rishi Sunak on this issue.

But while any move to delay the rise will appease Tory backbenchers, it will also blast a bigger row between No. 10 and No. 11.

In September the chancellor warned Mr Johnson that without a new source of public finance revenue the NHS could not cope with a huge spending increase to fix the backlog and social care.

Former Treasury Minister Mel Stride, who is now chairman of the Commons Treasury Committee, backed the call to postpone it yesterday.

He suggested that the ‘stars form a coalition’ to help alleviate the subsistence crisis facing millions of families.

It is understood that no formal talks have taken place between the PM and Chancellor Rishi Sunak on this issue. But while any move to delay the rise will appease Tory backbenchers, it will also blast a bigger row between No. 10 and No. 11.

Mr Stride said it was clear Mr Sunak had ‘extra wrinkled room’ to afford the ‘politically and financially savvy’ delay.

His comments were echoed by Paul Johnson, head of the Institute for Fiscal Studies think-tank, who said the increase “didn’t need to happen this year”.

In recent days, senior Tory lawmakers, campaigners and business heads have called for a rethinking of the increase.

The campaign has gained significant momentum after the Daily Mail highlighted the issue last week.

The government said the health and social care levy would raise £12 billion annually for social care and clean up the NHS backlog. But energy prices have soared since then, inflation is at its highest level in 30 years and interest rates are facing huge increases.

Campaigners who fear it will affect household finances are joining the Daily Mail’s campaign Spike the Tax Hike.

A trading backlash intensified last night as industry leaders warned the increase would be the ‘final nail in the coffin’ for many firms. Trade bodies for pubs, builders, recruiters, convenience stores and farmers supported the campaign a day after the Institute of Directors and the British Chambers of Commerce.

Tory MPs are also pressing the PM to reconsider the hike as he tries to garner his support in the face of the partygate controversy that has crippled the government.

A minister admitted that he might quit Uday if the PM can save his job, saying: ‘The pressure is definitely mounting. I guess if he thought it was the “big thing” that could have saved him, maybe the prime minister would have survived.’

Mr Stride said the government ‘does not have the opportunity to move forward’, describing it as a ‘measure of inflation in itself’ which will have ‘knock-on consequences’ for the servicing cost of the national debt, hence its There will be negative financial impact. ,

He added: ‘Given that £13bn more is available in October than forecast, and that money can be used to properly cover the cost of not proceeding with the NI increase, the Stars Alliance would like to It is made possible from .

Paul Johnson said that the government should consider another tax to increase revenue, adding: ‘National insurance is paid only by workers and employers, so those who receive income from the money invested, professional pensions,’ and those who are relatively wealthy will not pay all. If something like income tax had been used, we would have been much better off financially.

Tory Sir John Redwood said: ‘The Treasury has got more money under the couch than the National Insurance hike.’

A government spokesman said: ‘We have supported businesses during the pandemic through our nearly £400 billion of support. It’s true that employers, who benefit from a healthy workforce, contribute to the levy.