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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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Just 25% of public think Sir Keir Starmer will win next election – with welfare row partly to blame

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Just 25% of public think Sir Keir Starmer will win next election - with welfare row partly to blame

Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.

A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.

Politics latest: ‘A moment of intense peril’ for PM

The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.

The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.

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Govt makes last-minute concession on welfare bill

The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.

The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.

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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

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Govt makes last-minute concession on welfare bill

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.

Read more:
How did your MP vote on Labour’s welfare bill?
The PM faced down his party on welfare and lost

And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.

The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.

Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.

“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”

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Emotional Reeves a painful watch – and a reminder of tough decisions ahead

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Emotional Reeves a painful watch - and a reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
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Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

Reeves looks visibly upset as Starmer defends welfare U-turn – politics latest

Her spokesperson says it was a personal matter that they will not be getting into.

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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.

Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.

The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.

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Image:
Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA

It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.

But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.

But Rachel Reeves has surely seen an omen of the impossible decisions ahead.

How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?

If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.

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Trump’s crypto ventures have added $620M to his net worth — Report

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Trump’s crypto ventures have added 0M to his net worth — Report

Trump’s crypto ventures have added 0M to his net worth — Report

With the US president’s ties to his family-backed business, World Liberty Financial, and a memecoin launch, Donald Trump has seen his personal wealth increase by millions in 2025.

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