'I believe in low taxes': Romford MP questions National Insurance hike

Boris Johnson announces hike in National Insurance

Tomorrow MPs will vote on plans to increase National Insurance by 1.25 percentage points. - Credit: Daniel Leal-Olivas/PA Wire

National Insurance is set to increase to 13.25 per cent.

Currently 12pc, prime minister Boris Johnson announced the hike today - September 7 - as a money-generating measure to help an ailing NHS alongside funding reforms to the care sector.

The tax will begin as a 1.25 percentage points rise to National Insurance from April 2022, before becoming a separate tax on earned income from 2023.

Mr Johnson said this hike would raise £36billion for frontline services over the next three years.

In terms of social care, the government has pledged that nobody will have to pay more than £86,000 for care across their lifetime.


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People with less than £100,000 in assets will have their care subsidised, while those with under £20,000 will not have to pay anything from these towards a care plan.

Romford MP Andrew Rosindell believes in the need for reform, but doesn't agree that a tax increase is the way to achieve it.

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Describing the current system as in a "state of crisis", Mr Rosindell told the Recorder: "In this country, if you have a terminal illness you will receive medical care free at the point of use.

"If you have dementia, you are likely to see your savings eliminated and your chances of passing on an inheritance evaporate."

While the Romford representative considers it "absolutely right" that the government fulfils promises to fix this broken sector, he questioned the current proposals.

"I believe strongly in the principle of low taxes, in particular for those on low incomes. Government should be looking to ease the tax burden, not increase it," he said.

Mr Rosindell added that this must be the catalyst for serious reform, otherwise social care risks becoming "an endless black hole of funding". 


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