MILLIONS will pay more tax in April as Downing St today confirmed the hated National Insurance hike is coming “no ifs, no buts”.
The cast-iron pledge comes after the policy was thrown into doubt as Boris Johnson refused to guarantee it was still happening.
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Senior Tories have also lined up to blast the tax whack – with a top minister even admitting the public were dead against it.
But asked if tax hike was still going ahead “no ifs, no buts”, the PM’s spokesman today emphatically replied: “Yes”.
They added: “Of course we understand other people may not want to pay more in tax – but, of course, we’ve set out the rationale for this and I think it’s clear that one of the public’s number one priorities is to support the NHS.”
James Heappey yesterday refused to confirm if the 1.25 per cent points National Insurance raid was still going ahead and said the government was in “listening mode”.
The Defence Minister was confronted with anger on Question Time as the audience railed against the tax whack.
After host Fiona Bruce observed most people opposed the rise, Mr Heappey went further: “I don’t think it’s a majority. I think it’s absolute.
“Everybody in the room is against it. Everybody in the room is feeling the squeeze.”
The NI hike will add £130 a year to the tax bill of Brits on a £20,000 salary, and £255 for those who earn £30,000.
People on £50,000 will pay £505 extra annually, those on £80,000 will have to fork out £880 and earners on £100,000 face a £1,130 bill.
Mr Heappey added: “You’ll have noticed the top of the Government is in listening mode at the moment.
“There are plenty of people that are on good salaries that are starting to worry about how they’re going to make ends meet and the Government is seeking to address that. We’re going to need to do a lot over the next few years to help people with this.”
CRUNCH TIME
The latest row came as the Chancellor and PM prepare to make a crunch decision on relief for the looming cost of living crisis this week.
Officials will come forward with a menu of options to present to ministers within days, which will help struggling households stay afloat.
When repeatedly grilled on why he was raising tax for struggling Brits, he insisted: “It is absolutely vital. I hope that people understand, we have to fund the Covid backlogs, we have to fix social care.
“Every penny will go to that end – I think people do understand.”
Labour say Mr Johnson is now wobbling to save his own skin from rebellious Tory MPs.
The prime minister’s official spokesman said there were “no plans” to delay the national insurance rise, but repeatedly declined to guarantee the increase would go ahead in April.
Yesterday former Commons Leader Mel Stride joined forces with ex-Housing Secretary Robert Jenrick to urge him to think again.
The Tory big beasts warned that households would face a huge whack from inflation, council tax bills and energy bills soaring.
FROSTY RECEPTION
And former Brexit chief, Lord Frost, insisted time was running out until the next election, and urged the PM to “be on the side of people who want to control their own lives”.
In a major intervention in The Sun today, he said ministers must encourage budding entrepreneurs “by lowering not raising taxes, cancelling the National Insurance rise planned for April, getting rid of unnecessary regulations, encouraging business investment.. and not making everyday costs like energy or motoring ever more expensive.”
Economists say the huge windfall the Chancellor is set to receive this year will be enough for the PM to cancel the tax rise and still have enough to pay for extra NHS and social care costs.
Mr Jenrick warned: “This year is going to see households face a very significant squeeze on their incomes, the like of which we haven’t seen for a long time.”
And Mr Stride added: “Every MP is concerned about what is going to be a very difficult year for the cost of living – the government needs to look at whatever measures it can take.
“I think the stars have aligned in a way that makes that possible, and it’s something my colleagues would welcome.”
Respected think tank boss, Paul Johnson of the Institute for Fiscal Studies said “from a fiscal point of view, it doesn’t have to happen this year”.
And businesses warned the rise would mean they would have no choice to put up prices if the PM pushed ahead with his plan.
Jasmine Robson, who owns a cafe and bar in Darlington said: “We will have to pass on that cost to customers.
“A delay [to National Insurance rise] would be good, but if it didn’t go up at all, it would be better.”
Boris Johnson confirms the NI tax hike will go ahead saying ‘every penny’ will help to fund the ‘Covid backlog’
