Concern at the top of government over a rise to national insurance has spilled into the open after a senior minister suggested that voters would remember broken promises on tax.
Leader of the House of Commons Jacob Rees-Mogg used his weekly segment in the Sunday Express newspaper to republish a famous quote by former president George Bush senior: “Read my lips: no new taxes”.
Mr Rees-Mogg wrote that “voters remembered those words after president Bush had forgotten them”.
Image: Many blamed the broken tax pledge by George Bush senior for his downfall. Pic: AP
The 1988 promise was broken by the former American leader and cited by many as a reason for his loss of the White House four years later.
While Mr Rees-Mogg did not reference national insurance directly, his intervention is representative of concerns among some cabinet ministers about the planned move.
The policy would go against a promise made by the Conservative Party in the last election not to increase income tax, VAT or national insurance.
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Conservative donor and former deputy chairman of the party Lord Ashcroft tweeted the 2019 manifesto pledge with the comment “a reminder”.
Downing Street has not confirmed details of the announcement but a senior government source said ministers “will not duck the tough but necessary decisions needed to get the NHS back on its feet”.
Tackled on Sky News over a threatened rise in national insurance, government minister Nadhim Zahawi did not rule out raising tax in order to fund social care.
He told the Trevor Phillips On Sunday programme: “We are absolutely committed to the social care reform and we will be coming forward by the end of the year with those details.”
However, there is also concern about the prospect of taxing younger workers to subsidise the care and protect the homes of older people.
One minister told Sky News: “It doesn’t sit well with an across the board subsidy to help a few who have assets to protect.”
The social care plans are likely to include a cap on costs designed to stop assets like property needing to be used in full to fund care fees.
But this has provoked concern among some MPs because of the possibility of those with high value homes benefitting the most.
“I’m very concerned about the fact we seem to be protecting the inheritances of those with means at the same time as stripping the £20 uplift [in universal credit]”, said one newly elected MP.
A senior Conservative said “it seems like a tax on middle England … it does not seem very Conservative”.
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Former prime minister John Major told the FT Weekend Festival that the policy was regressive and should be done in a “straight forward and honest fashion” through taxation.
Trade union boss Frances O’Grady also criticised the proposal saying it “wasn’t right” to hit young and low paid workers with a tax increase while “leaving the wealthy untouched”.
The TUC general secretary instead called for the government to increase capital gains tax – a levy on profits made when selling assets like property or shares.
Much of the criticism has stemmed from the fact that national insurance is not paid by people older than the state pension age.
The tax is also only paid on earnings, so wealthier individuals who live off rental income, savings or dividends do not contribute.
Image: TUC chief Frances O’Grady says the move will hit young and low paid workers
Labour frontbencher Lisa Nandy told Sky News her party supported the “broad principle” of increasing taxes for the wealthy to pay for NHS and social care recovery.
Speaking Trevor Phillips, she said: “I think the broad principle that Frances O’Grady is laying out – that those with the broadest shoulders should take some of the burden – is absolutely right.
“Fixing the social care crisis is going to cost a great deal of money and the prime minister’s plan as we understand it… is that he’s going to break his 2019 promise to not raise national insurance contributions and load the entirety of the cost of social care on to supermarket workers, delivery drivers who are already suffering with high childcare costs, high housing costs and who kept us going through the pandemic.
“I think that’s a really difficult ask of a group of people who haven’t done well under this Conservative government over the last 11 years.”
With national insurance also paid by employers, business groups have also criticised the plan.
JD Vance has said he does not want the UK to go down a “very dark path” of losing free speech during a meeting with the foreign secretary at his country estate.
The US vice president has previously raised concerns that free speech is being eroded in the UK.
However, during a two-day visit to David Lammy’s grace and favour 115-room mansion, Chevening House in Kent, Mr Vance kept his criticism a bit more low key.
Asked about free speech in the UK during a televised meeting of the two men, Mr Vance said he has “raised concerns” about free speech in his own country and accused the West of “censoring rather than engaging” with different opinions.
He said: “I think the entire collective West, the transatlantic relationship, our NATO allies, certainly the United States under the Biden administration, got a little too comfortable with censoring rather than engaging with a diverse array of opinions. So that’s been my view.
“Obviously, I’ve raised some criticism, concerns about our friends on this side of the Atlantic.
“But the thing that I’d say to the people of England or anybody else, to David, is many of the things that I worry most about were happening in the United States from 2020 to 2024.
“I just don’t want other countries to follow us down what I think was a very dark path under the Biden administration.”
Mr Lammy, who has struck up the unlikely relationship over the past few months, did not comment on Mr Vance’s indirect criticism.
Image: The two politicians went fishing on the Chevening estate. Pic: Reuters
Image: Mr Vance revealed he caught a few fish but Mr Lammy was not so successful. Pic: Reuters
In February, when Sir Keir Starmer was carrying out a similar televised meeting with Donald Trump in the Oval Office, Mr Vance said “infringements on free speech” now do not just affect the British, but also American tech companies – “and by extension American citizens”.
Sir Keir quickly interjected, saying: “We’ve had free speech for a very long time, it will last a long time, and we are very proud of that.”
Mr Vance and his family are staying with Mr Lammy at Chevening for two days before heading to the Cotswolds for a summer holiday.
The vice president was effusive in his praise for the grand estate that comes with Mr Lammy’s job, saying “being here lifts up the human spirit” as he thanked the “people of England” for having such a “beautiful place for foreigners like me to come and talk about the issues of the day”.
The two politicians went fishing ahead of their meeting, with Mr Vance revealing he caught a few, while all three of his children caught a fish but Mr Lammy did not.
He also said his children had fallen asleep on the floor of the large house, and his three-year-old daughter kept asking if she would see Mr Lammy’s daughter.
Mr Lammy posted a picture of him and Mr Vance laughing as they fished, saying it was a “real pleasure” to welcome the Vance family and the vice president “gave me fishing tips, Kentucky style”.
JD Vance confirmed he will holiday in Scotland next week in a trip that could see up to 1,000 police officers deployed as part of security efforts.
He confirmed his Scottish trip during talks with Mr Lammy on Friday.
Sky News understands the Vance family are likely to visit Ayrshire, the same area where Mr Trump recently stayed where he secured a trade deal with the European Union.
Police sources have suggested approximately 1,000 officers will be working across the visit to ensure the vice president and his loved ones are safe, Sky News’ Scotland correspondent Conner Gillies reported.
Police Scotland declined to comment on the specifics.
It is understood the Vance family will not be staying at Trump Turnberry, the luxury Ayrshire resort owned by the US president himself.
A Police Scotland spokesperson said: “Planning is under way for a potential visit to Scotland by the vice president of the United States.
“Details of any visit would be for the White House to comment on, however it is important that we prepare in advance for what would be a significant policing operation.”