RISHI Sunak last night fuelled hopes the poorest Brits may be taken out of the hated National Insurance tax hike .
And insisted it was his “mission” to cut taxes for everyone else as soon as he could.
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Ahead of his long-awaited spring statement, the Chancellor promised “of course” he would step in when he could make a difference as millions of Brits face a huge cost of living squeeze for months to come.
He repeatedly insisted that he would target any help to the most needy and vulnerable – refusing to deny speculation that he may hike benefits up to match soaring inflation.
The three per cent hike was decided last year, before food and fuel prices spiralled up to nearly six per cent.
Mr Sunak told the BBC: “Those on lowest incomes have seen the greatest amount of support in this.
“Look at what we have already done. I want to make sure we are helping those who are the most vulnerable.”
Although Treasury insiders have insisted this week’s statement will be “policy-lite”, he has room for some giveaways thanks to better than expected tax takes and lower borrowing.
Yet under-pressure Mr Sunak stood by the decision to hike hated National Insurance for millions of workers – arguing it was vital to cut waiting lists down and vowing “every penny” would be go straight to the NHS.
He swerved questions on whether he might hike up the threshold at which lower paid Brits start to pay National Insurance – which would be an effective tax cut for millions.
As the Chancellor puts the finishing touches on Wednesday’s fiscal statement, he vowed to make sure the cash was wisely spent by boosting efficiency and waste targets.
The Treasury chief vowed he will “stand by” Brits as he did during two years of Covid hell and going forward it was his “priority is to cut tax and put money into people’s pockets”.
When grilled about whether he would step in with more help on energy, bills and fuel: “Of course I am, and people can judge me by my actions over the past two years.
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“Without question, this is people’s number one priority – I get that.
“I will stand by them in the same way that I have done in the past couple of years.
“Where we can make a difference, of course we will.”
He told Brits not to be “scared” about soaring energy prices again in the autumn, insisting it was too early to speculate on what might happen to the price cap then as prices were so up in the air.
Mr Sunak pointedly played down the chances of any more cash for defence – despite pleas from Foreign Secretary Liz Truss to up our cash spending to deal with evil Putin and Russia’s aggression.
He said “we are spending a lot” – and that the Ministry of Defence had already received “the largest cash uplift since the end of the Cold War” with a £24billion boost.
Experts at the Resolution Foundation say today (MON) that giving a boost to Universal Credit and other cash hand-outs to keep pace with inflation would give “four times more support” than cancelling the NICS hike.
Principal economist Adam Corlett warned that “rapidly rising inflation is on course to bring about the biggest income squeeze families across the UK have faced since the 1970s”.
He added: “The main income support will need to come from either the tax or benefits system.
“Raising benefits by a further five percentage points would deliver four times as much for these families as cancelling the national insurance rise, and should be the Chancellor’s top policy priority.
“But if Rishi Sunak is keen to demonstrate his tax-cutting credentials alongside raising benefits, then raising the national insurance threshold too would be the best route, as it is well targeted at middle income households.”
Last night Labour warned that pensioners are set to be £1,400 worse off thanks to tax hikes and rising bills. (22.30)
Shadow work and pensions chief, Jonathan Ashworth said: “It’s daylight robbery and Boris Johnson has betrayed retired people.”
