Boris Johnson NI 'guarantee' may be 'shredded' says expert
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Mr Mason says the speech made by Boris Johnson before the 2019 General Election is going to “shred” the government’s plan to hike National Insurance for social care reform. The clip shows the Prime Minister claiming “it’s a guarantee” the Conservative Party would not backtrack on the promise not to raise VAT, income tax, or National Insurance. But his comments come as Mr Johnson will push through a reported one-percent National Insurance tax rise to fund social care despite growing opposition from his cabinet and Conservatives in the north of England. The plans would mean Mr Johnson smashing a core manifesto pledge with many, including Tory MP Sir John Redwood, accusing the government of unfairly targeting the young and pushing back post-Covid economic recovery with the policy.
In the clip, Prime Minister Boris Johnson makes a “guarantee” that he can solve the social care crisis without raising taxes.
He said: “Here’s the kicker, we can do all these things without raising income tax, VAT, or National Insurance contributions.
“That is our guarantee!”
Mr Mason added: “Here’s the kicker now, that guarantee looks like it is going to be shredded!”
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His comments were followed by insight from Stuart Adam at the Institute for Fiscal studies who outlined the “simplest way” to raise large amounts of money is through increasing rates of VAT, income tax, and National Insurance.
Labour as well as a growing number of Conservative MP’s condemn the move by Mr Johnson.
In an interview with the Daily Mirror, Labour leader Sir Keir Starmer ruled out supporting an increase in national insurance contributions to fund the social care crisis
Mr Starmer said: “We do need more investment in the NHS and social care but national insurance, this way of doing it … hits low earners, it hits young people and it hits businesses.”
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His damning comments come as meetings to discuss the social care plan for England have been taking place between the Prime Minister, Chancellor Rishi Sunak, and Health Secretary Sajid Javid over the weekend, according to government sources.
The plans would see Boris Johnson’s manifesto promise to solve the social care crisis in England begin the make pace despite the Prime Minister making no prior action on the issue.
It has been reported the government is considering increasing the National Insurance rate by one percentage point from 12% to 13%, while the rate for higher earnings goes up from 2 percent to 3 percent.
According to government estimates, raising the National Insurance rates for employees by one percentage point would raise about £5.4bn a year while increasing the rate paid by employers from 13.8 percent to 14.8 percent would raise about £6.5bn a year.
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The Government argue implementing rates for others such as the profits of self-employed people would raise about another £600m.
Around 12 percent of earnings up to about £50,000 a year go towards National Insurance, above that point you pay 2 percent of your earnings.
That means somebody on £20,000 a year would pay an extra £104, while someone on £50,000 would pay £404 more.
National Insurance is a tax paid on earnings and the profits of self-employed workers. When you are employed you start paying National Insurance once you’re earning just under £10,000 a year.
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