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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Social care: What govt hopes to do this week
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.
Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.
Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.
Image: King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.
“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.
Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.
Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.
King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.
Image: King Charles speaking at state banquet welcoming Macron.
Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”
In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.
The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.
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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.
The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.
Image: President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.
Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.
He said European countries had to break away from economic dependence on the US and China.
“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.
“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”