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MPs have backed a tax hike to boost funds for dealing with the NHS treatment backlog and to reform social care in England.

On Wednesday night, the House of Commons voted by 319 to 248, majority 71, in favour of a 1.25 percentage point rise in National Insurance contributions from next April.

The backing for Prime Minister Boris Johnson’s plans, which he admits are a breach of a Conservative manifesto promise not to raise major taxes, came despite five Tory MPs rebelling to vote against the government.

They included former work and pensions secretary Esther McVey. And a further 37 Conservative MPs recorded no vote, with many of them choosing to actively abstain.

Ministers have said the estimated £12bn a year raised by the new “health and social care levy” will be used to help tackle soaring waiting lists for NHS treatments as a result of the coronavirus pandemic.

It will also be spent on changes to the social care system that are scheduled to come into force from 2023.

But Labour have branded the UK-wide rise in National Insurance – paid by workers and businesses – as a “tax on jobs” and claimed it would not fix the problems in social care.

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During a Commons debate on the government’s plans, Labour’s shadow chancellor Rachel Reeves accused ministers of attempting to rush the plans through parliament before they “unravel”.

Wednesday night’s vote on the proposals came just a day after Mr Johnson had announced them, with some criticising the little time MPs were given to consider them.

Ms Reeves told MPs: “Social care is a huge challenge facing our country. There are other challenges facing us too. We need to do things differently.

“Labour’s test is simple: Does it fix the problem? And does it do so in a fair way? The answer to both those questions in relation to these proposals is no.

“That is why Labour will vote against this unfair, job taxing, manifesto-shredding, tax bombshell this evening.”

The government also faced opposition from its own benches to the proposals, with Tory former minister Jake Berry telling the prime minister he risks creating an “un-Conservative” and permanent “NHS tax”.

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Social care tax rise: Regressive or progressive?

The Rossendale and Darwen MP, who chairs the Northern Research Group of Tories, said: “If you create an NHS tax, you have an NHS tax forever, it will never go down, it can only go up.

“No party is ever going to stand at an election and say I’ve got a good idea, vote for me, I’ll cut the NHS tax.

“So I just think there’s huge danger for us in creating such a hypothecated tax and having it on people’s payslips.

“It is fundamentally un-Conservative and in the long term it will massively damage the prospects of our party because we will never outbid the Labour Party in the arms race of an NHS tax and that’s why I don’t think this is the right way to do it.”

Prominent Conservative backbencher Steve Baker claimed his party were “in a dreadful position” and would have to “rediscover what it stands for”.

“We all know that eventually as a socialist you run out of other people’s money and I have to say I’m sorry ministers I’m not going to be able to vote with you tonight because some of us are going to have to be seen to be standing for another path,” he said.

Peter Bone criticised Number 10 for conflating social care reform with extra money to deal with NHS waiting lists, and fellow Tory MP Richard Drax asked where was “the vision of this Singapore-style low-tax economy attracting the world’s best to this country”.

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Raising taxes ‘a very Conservative thing to do’

Outside of the Commons, Mr Johnson’s former chief adviser Dominic Cummings posted on Twitter: “Tell your friends: the Tories are making the young – who can’t get a house & working for average/below average income, already screwed by a decade of hapless Tory government – to work harder to subsidise older richer people. They promised to do the opposite.”

Immediately before Wednesday night’s vote, the prime minister spent almost an hour addressing a meeting of the Tory party’s 1922 Committee.

He assured Conservative backbenchers that the party remained committed to free enterprise, the private sector and “low taxation”.

But he said he could not think of a “better use” for taxpayers’ money than spending on the NHS.

Earlier on Wednesday, the Institute for Fiscal Studies (IFS) warned the money raised by the National Insurance increase risked being permanently swallowed up by the NHS with “little if any” left over for social care.

Under the government’s plans the NHS will get the majority of the £36bn raised in the first three years, with £5.4bn for social care in England.

Health Secretary Sajid Javid has insisted that “more and more” of the money raised by the levy would go towards social care in future years, but he has failed to say how much and when.

Yet Mr Javid told Sky News on Wednesday there will be “enough money” to pay for reforms to the care sector.

Scotland, Wales and Northern Ireland will receive an additional £2.2bn in health and social care spending from the tax rise.

The SNP claimed Scotland could be “sold short” and receive “less in return than the money taken from Scottish-based National Insurance payers”.

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University tuition fee rise branded ‘morally wrong’ – as Education Secretary Bridget Phillipson defends increase

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University tuition fee rise branded 'morally wrong' - as Education Secretary Bridget Phillipson defends increase

The education secretary has said no decision has been made on whether university tuition fees will increase with inflation each year.

Bridget Phillipson has announced the maximum cap on tuition fees in England will go up in line with inflation from April 2025.

The cost of tuition will increase by £285 to £9,535 next year – the first rise in eight years.

Politics latest: Big name comeback in new Tory shadow cabinet

There will also be a rise in maximum maintenance loans to increase in line with inflation, giving an increase of £414 a year to help students with living costs.

However, the education secretary did not say if the rise would continue after that.

Speaking to Sky News’ Politics Hub with Sophy Ridge, Ms Phillipson admitted she did not know what would happen with tuition fees after April 2026.

“We’re going to look at this and the maintenance support and the sector overall as part of the reform that we intend to set out in the months to come,” she said.

“So no decision, no decision has been taken on what happens beyond this.”

She said the government will be looking at “what is required… to get our universities on a more sustainable footing… but also to deliver a better deal for students as a part of that”.

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University tuition fees to increase

The minister said she also “intends to look at” uprating the threshold at which students need to start paying tuition fees back in line with inflation.

Jo Grady, general secretary of the University and College Union (UCU), said the tuition fee rise was “economically and morally wrong”.

She said: “Taking more money from debt-ridden students and handing it to overpaid underperforming vice-chancellors is ill conceived and won’t come close to addressing the sector’s core issues.”

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The National Union of Students (NUS) said students were being asked to “foot the bill” to keep the lights and heating on in their universities and to prevent their courses from closing down amid the “crisis”.

Alex Stanley, vice president for higher education of the NUS, said: “This is, and can only ever be, a sticking plaster.

“Universities cannot continue to be funded by an ever-increasing burden of debt on students.”

Universities have been making up for fees being frozen since 2017/18 by taking in international students who pay more.

However, student visa numbers have fallen after the previous government made it more difficult for them to come to the UK recently, so universities can no longer rely on the fees.

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These crypto ETFs are ‘call options’ on the US elections

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<div>These crypto ETFs are 'call options' on the US elections</div>

The US presidential race could determine the fate of more than half a dozen proposed crypto ETFs.

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Priti Patel makes comeback in Kemi Badenoch’s shadow cabinet

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Priti Patel makes comeback in Kemi Badenoch's shadow cabinet

Dame Priti Patel has made a comeback as Kemi Badenoch has appointed her shadow foreign secretary, Sky News understands.

Ms Badenoch, who became Conservative leader on Saturday, started officially appointing her shadow cabinet on Sunday evening.

Politics latest: Reaction as Badenoch makes more shadow cabinet appointments

On Monday afternoon, the two biggest jobs were confirmed, with former home secretary Ms Patel being given the shadow foreign secretary role.

Former shadow work and pensions secretary Mel Stride, who ran in the Tory leadership race and is considered more of a moderate than Ms Badenoch, has been made shadow chancellor.

Robert Jenrick, who lost out to Ms Badenoch, is the new shadow justice secretary, sources told Sky News.

Earlier in the day, Laura Trott, who served as chief secretary to the Treasury under Rishi Sunak, was appointed shadow education secretary.

The new Tory leader made her first appointments on Sunday evening ahead of her new top team meeting for the first time on Tuesday.

Mel Stride
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Mel Stride was work and pensions secretary and stood to be Tory leader

Now the Conservatives are in opposition, the shadow cabinet’s role is to scrutinise the policies and actions of the government and to offer alternative policies.

Nigel Huddleston and Dominic Johnson, junior ministers under Mr Sunak, were appointed joint chairmen of the Conservative Party.

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The role involves overseeing the party’s headquarters, where staff and committee members have their offices.

Essex MP Dame Rebecca Harris was confirmed as chief whip after the interim chief whip Stuart Andrew said she was replacing him.

She will be responsible for ensuring Tory MPs attend and vote in parliament as the party leadership desires.

Read more:
Who’s who in Kemi Badenoch’s new shadow cabinet

University tuition fees to increase in England for first time in eight years

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Badenoch: ‘We let standards slip’

Former foreign secretary James Cleverly, who came third in the leadership race, said on Friday he would not be joining Ms Badenoch’s top team.

Ex-prime minister Mr Sunak, his former deputy Sir Oliver Dowden, ex-chancellor Jeremy Hunt and former Brexit, health, and environment secretary Steve Barclay have all said they will be joining him on the backbenches.

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