Tory rebellion LIVE: Sunak holds crisis talks with powerful group – Boris under pressure

Andrew Marr grills Lisa Nandy over National Insurance ‘plan’

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The PM’s proposal to raise National Insurance rates will break his 2019 manifesto promise. Under a heading titled “Boris Johnson’s Guarantee” and bearing his signature, Mr Johnson wrote: “I guarantee we will not raise the rate of income tax, VAT or National Insurance.” Mr Johnson is also expected to address the influential Tory 1922 committee later this week.

Senior Tory Sir Charles Walker suggested that Mr Sunak would be left with little doubt about the views of MPs during the meeting. 

“There’s going to be a lot of concern and we are going to reflect the concern of our constituents,” he told BBC Radio 4’s World at One.

“I’m not surprised the Government is running out of money because it has just spent £430 billion shutting down the economy.”

Sir Charles went on to add that he favoured an insurance model which could be used to cap the liability for care costs.

Labour leader Keir Starmer also came out confirming the Opposition will oppose the NI rise.

Mr Starmer said: “We do need more investment in the NHS and social care but National Insurance, this way of doing it, simply hits low earners.

“It hits young people and it hits businesses. We need a fair way to raise the money that is needed.”



  • No news on when announcement will be13:29
  • What is National Insurance?12:53
  • More backlash from Conservative MP’s12:42
  • How much could your taxes rise?09:54
  • The challenges facing social care09:39
  • Who is rebelling?08:22
  • Stark warning to PM08:11
  • No news on when announcement will be

    Downing Street said the Government remained committed to reform of the social care sector but declined to be drawn on when the announcement would be made.

    “We are committed to setting out long-term sustainable reform of the sector and that is what we will do, but beyond that, I am not going to be getting into any more speculation,” the Prime Minister’s official spokesman said.

    “The challenges that face the social care sector are long-standing and have successively not been addressed, and that is something the Prime Minister is committed to doing.”

    What is National Insurance?

    National Insurance is paid by workers until they reach the state pension age and by employers. 

    Governments have only increased the tax twice since the 1990s, once by the Tory/Liberal Democrats coalition in April 2011 and in 2003 Labour raised it to boost the NHS. 

    More backlash from Conservative MP’s

    Alex Stafford, Conservative MP for Rother Valley, said his party should not be raising taxes “willy-nilly” or “without a plan” to reform social care. 

    The backbencher told Times Radio: “My concern is if they just add an extra one percent on National Insurance or whatever, but no actual fundamental way to make social care provision better, it’s a bit pointless.

    “What we need is a new plan of how we provide social care and then see how much is the cost, and how much we are going to need to get from the public. We can’t just raise it without a new way of providing social care.”

    Burden across generations

    Economic think tank the Institute for Fiscal Studies suggested that increasing basic and higher rate income tax by just under 1.5 percentage points would raise a similar amount to a one percentage point hike in National Insurance contributions and would spread the burden across the generations.

    Research economist Stuart Adam said: “Choosing to increase NICs rates would mean that just 1.4% of additional revenue came from families that contain a pensioner – who now make up 23% of all families.

    “In contrast, these families would contribute 13.8% of additional revenue if the basic and higher rates on income tax were increased.”

    ‘Total mockery’ of agenda

    Leader of the Liberal Democrats in the House of Lords, Richard Newby took to social media to agree with statements coming from senior Conservative ministers. 

    ‘Unreasonable’ policy

    Former minister Jake Berry, leader of the Northern Research Group of Tory MPs, warned against a policy which appeared aimed at elderly voters in affluent southern seats.

    Rossendale and Darwen MP Mr Berry said: “It doesn’t really seem to me reasonable that people who are going to work in my own constituency in east Lancashire, probably on lower wages than many other areas of the country, will pay tax to support people to keep hold of their houses in other parts of the country where house prices may be much higher.”

    He told BBC Radio 4’s Today that as National Insurance was not paid by people who are retired there was also a question of intergenerational fairness.

    When will an announcement be made?

    Downing Street sources said details of the social care plans were still being worked out on Sunday night and that a day for the announcement was yet to be confirmed.

    How much could your taxes rise?

    Around 25 million working Brits are expected to be impacted by these new plans.

    Downing Street allegedly backs a one percent rise whilst the Treasury wants to see a figure as high as 1.25 percent according to a government source.

    Sajid Javid is even said to be pushing for a two percent rise.

    Read more: National insurance tax rise: Staggering amount YOUR taxes could rise under Johnson’s plans | Personal Finance | Finance |

    The challenges facing social care

    -Council spending in England is three percent lower than in 2010-Estimated 1.5 million people in England don’t get the help they need-Staff shortages-Backlog for NHS-Impact of the pandemic -People who don’t qualify for free care often pay more-Ageing population

    Blow to nurses

    Nurses United UK has slammed the plans to increase National Insurance warning it could mean frontline NHS nurses extra in contributions.

    Lead organiser for the group Anthony Johnson said: “What a surprise that this Government, funded by those billionaires, is deciding to invest in more privatisation and is making frontline NHS workers and the rest of us pay for it?

    “This is not a recipe for more staff, they need restorative pay rises to bring our NHS back to safety, not more pay cuts.”

    Warning from former chancellor

    Former Chancellor Phillip Hammond, who faced backlash after trying to raise National Insurance for the self-employed, said it would be wrong to target working families and leave pensioners paying nothing. 

    He warned that he would vote it down in the House of Lords. 

    Boost for NHS backlog

    A senior government official confirmed to Playbook that the PM is expected to announce £5.5 billion to go to the NHS. 

    The money is likely to begin “busting backlogs” after the waiting list hit 5.5 million and is projected to rise to 13 million. 

    SNP warn of impact on young people

    THE SNP has claimed the plans will unfairly hammer young people, low-paid workers, and Scottish families. 

    SNP Westminister leader Ian Blackford said the increase would “add to the intergenerational unfairness imposed on younger generations”.

    How will the money be spent?

    The Times reports that Boris Johnson, Chancellor Rishi Sunak, and Health Secretary Sajid Javid have reached an agreement on a National Insurance hike of “about 1.25 percent.”

    The trio are said to be “deadlocked” over how the expected £10 billion a year for social care will be spent.

    Who is rebelling?

    The list of those opposing the proposal has grown in the past few days. 

    The Daily Mail reports that very few ministers are in favour of the idea. 

    “I’ve seen it reported that five Cabinet ministers are opposed to the idea. The truth is you would struggle to find five of us who are in favour.”

    Former chancellors Phillip Hammond, Ken Clarke and Norman Lamont have all come out against the rise. 

    Read more:  MPs to ‘kick off’ over pension triple lock and National Insurance hike ‘It’s tax on work!’ | UK | News |

    Stark warning to PM

    Mr Rees-Mogg unsubtly reminded Mr Johnson of the consequences for George Bush Snr when he broke his promise in 1988 on his way to being US President: “Read my lips: no new taxes.”

    The leader of the commons added: “Voters remembered these words after President Bush had forgotten them.”

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