Jeremy Hunt admits his plan to end national insurance ‘won’t happen any time soon’
Jeremy Hunt has outlined his desire to abolish “unfair” national insurance tax – but admitted it “won’t happen any time soon”.
The chancellor described national insurance as a “tax on work” and said it he believed it was “unfair that we tax work twice” when other forms of income are only taxed once.
Mr Hunt used his budget yesterday to slash national insurance by 2p – rather than cutting income tax as some Tory MPs had demanded.
He also indicated plans to completely scrap national insurance contributions – a move Labour has branded “reckless”.
Speaking to Sky News from Liverpool this morning, Mr Hunt said: “We said we want to end that unfairness over time, it’s something we will only do when it’s possible to bring down taxes without increasing borrowing while also prioritising public services.
Politics latest: Backlash over ‘reckless’ plan to abolish national insurance
“If we are going to succeed as a country, we need to make work pay.”
Labour has demanded the chancellor reveal how much his plan to scrap national insurance would cost, after its own estimates suggested the move could cost £46bn a year – equivalent to £230bn over the course of a five-year parliament.
The party has argued such a move could end up being more costly than the £45bn package of unfunded tax cuts announced in by Liz Truss in her mini-budget which unleashed economic chaos and upended her premiership.
Asked how he would pay for ending national insurance, Mr Hunt said: “We are not saying this is going to happen any time soon” and suggested that income tax and national insurance could also be merged.
According to the Office for Budget Responsibility, the independent public finances forecaster, income tax brought in £251bn in 2022-23, while national insurance brought in £177bn.
Merging the two could see income tax increase to bring in the extra money national insurance currently raises.
Read more:
A March budget has been delivered – but still not a spring in the Tories’ step
Budget not everyone’s cup of tea as Voters Panel suggests plans unlikely to win back Tory 2019 supporters
This could have a knock impact in a number of areas – including for pensioners, who do not pay national insurance but do pay income tax.
Mr Hunt told Kay Burley on Breakfast the government had done an “enormous amount for pensioners” and had “really prioritised pensioners” following criticism for his decision to choose national insurance cuts rather than income tax cuts.
He pointed to the fact the government introduced the triple lock, whereby the state pension must rise by either average earnings, inflation or 2.5% every April – whichever figure is the highest.
“In the end, the way that we can keep increasing the state pension is by growing the economy and that’s why the measures I took yesterday are smart tax cuts that are going to help grow the economy,” he said.
Labour’s shadow chancellor Rachel Reeves said the government “giving with one hand but taking actually double in the other”.
Please use Chrome browser for a more accessible video player
Will Labour put up taxes?
“If you take into account the tax cuts and the tax rises on working families, but the end of the forecast, the average family will be paying £870 more in tax – that is despite the cut in national insurance yesterday,” she said.
Ms Reeves said that Labour would support the cut to national insurance but would not give any spending commitments on either that tax or income tax if her party wins the next election.
Thunderstorm warnings have been issued for large parts of the country, lasting from lunchtime until Monday night.
The Met Office says thunder and heavy downpours could cause flooding and travel problems.
Southeast England – including Kent, Sussex, Surrey, Hampshire and south London – could be affected from noon, says the forecaster.
Other areas affected are mid-Wales and most of northern England, stretching up past Glasgow into southwest Scotland.
That warning is in force from 1pm – with both alerts ending at 9pm.
Pic: Met Office
Pic: Met Office
“Spray and sudden flooding could lead to difficult driving conditions and some road closures,” says the Met Office, while there is also a small chance that roads and properties could be flooded.
Bank Holiday Monday has brought a grey and cloudy start for many, with forecasts ranging from 12C (53F) in the Hebrides to 18C (64F) in northern England at 1pm.
Get the latest Sky News forecast for where you live
However, it will become warmer, brighter and drier from Tuesday with high pressure forecast for much of the UK – and it should stay that way for next weekend.
Read more from Sky News:
Woman arrested after baby has cardiac arrest at Legoland
Sunak admits Tories may not win general election
London is expected to have 23C (73F) with sunny spells next Saturday and Sunday, according to the Met Office.
Highs of 20C (68F) are forecast in Edinburgh, while Cardiff is set for sunshine and 19C (66F), and Belfast likely to struggle with cloud but still feeling warm with a maximum of 20C.
West Ham have agreed a deal in principle with Julen Lopetegui to take over from David Moyes as manager at the end of the season, Sky Sports News understands.
Lopetegui, 57, has been out of work since leaving Wolves three days before the start of the season but has stayed in England in the hope of landing another job in the Premier League.
The Spaniard, who has also managed Porto, Spain, Real Madrid and Sevilla during an illustrious coaching career, looks set to take charge at the London Stadium at the end of the season after Moyes’ expected departure.
Julen Lopetegui. File pic: PA
West Ham are ninth in the league after Sunday’s 5-0 defeat at Chelsea.
Moyes, 61, who is out of contract in the summer, has faced increased questions about his future as his team have won only one of their previous nine league games.
He said he felt “really sorry” for West Ham fans after watching his side fall to a heavy loss at Stamford Bridge.
He said: “The fans have been great but I feel bad for them.
“I don’t normally have teams who get beaten like this but we are lacking some ingredients – mental toughness and leadership to get better results, or at least not get hammered.
West Ham United manager David Moyes during the Premier League defeat at Chelsea. Pic PA
“The fans played their part and I can only say I’m really sorry for how it played out.”
Asked if he was frustrated that the club was regularly being linked with other managers, he said: “I’ll talk to the board at the end of the season. We’ll do that then.”
The Scot, whose second spell as Hammers boss began in 2019, led the club to their Premier League points total of 65 in 2021, finishing in sixth place.
The following year they finished seventh and reached the semi-finals of the Europa League.
They went one better last year, winning the Europa Conference League final, the club’s first European trophy since 1965.
In November, Lopetegui told Sky Sports News he had unfinished business in the Premier League.
He said: “It’s why I’ve said no to different countries and different situations because I would like to stay here in England. I feel like our team here is just starting and we want to achieve our dreams.
“The way the country lives football here is special – it’s the best league in the world, the most competitive league in the world, the best environment for the players, coaches and fans too.”
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Environment12 months agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports6 months agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Sports1 month agoStory injured on diving stop, exits Red Sox game
-
Environment1 year agoTesla advances Powerwall pilot project with German electric company