Boris Johnson’s National Insurance tax hike will see two million families on low income families paying an extra £100-a-year while being hit with the double whammy of £1000-a-year cut in Universal Credit.
The Tory leader was confronted with the unfairness of his audacious 1.25 per cent rise in National Insurance when the House of Commons met for Prime Minister ’s Questions for the first time since the Summer.
Damning analysis from the Resolution Foundation think tank found young people will pay an extra £12,600 over their lives for a Tory care cap that helps those in the south of England the most.
Blackford told the Commons: “Yet again, the Tories are balancing the books on the backs of the poor and the young – who will be hundreds of pounds worse off every year. It’s Tory Austerity 2.0.”
Labour leader Keir Starmer also slammed the £36 billion tax rise as being balanced against the low paid care workers who will get no guarantee that they will see a penny of the extra spending.
Starmer confronted Johnson across the despatch box, saying: “His plan is to impose unfair taxes on working people, my plan is to ensure those with the broadest shoulders pay their fair share.
“The truth is his plans don’t do what he claims. People will still face huge bills, many homeowners will need to sell their homes, he’s not denying it when he could have done.”
He added: “Who’s going to pay for the cost of this failure? Working people. A care worker earning the minimum wage doesn’t get a pay rise under this plan, but does get a tax rise, in what world is that fair?”
But Johnson accused Starmer of delivering a “minestrone of nonsense” and having no plans of his own as they traded previous statements on whether a rise in National Insurance was progressive or not.
Starmer said: “Let me tell you what an ambitious young member for Henley said in 2002 in this House … ‘national insurance increases are regressive’. I wonder what happened to him?”
But Johnson found quotes from Labour figures and think tanks to back his plan to “deal with NHS backlogs” in order to fix the care system in England.
The PM replied: “The Institute for Fiscal Studies has confirmed that this is a broad-based and progressive measure.”
But the Institute for Fiscal Studies, the tax and spending thinktank, analysis also stated that the social care sector in England may see none of the money and that the NHS “could end up permanently swallowing up the money raised by the tax rise”.
When it came to dealing with Ian Blackford’s complaints that the tax rise would hit the less well-off, the Prime Minister dug up a 2002 response from John Swinney, the SNP deputy leader, describing Gordon Brown’s decision to raise National Insurance by 1p as “progressive”.
Johnson said to Blackford: “I mean, get your story straight. This is more cash for people in Scotland, it’s more investment for families in Scotland, it’s good for Scotland and good for the heart of the United Kingdom.”
To sign up to the Daily Record Politics newsletter, click here.