[UK] Johnson and Sunak will proceed with payroll tax rise

UK Prime Minister Boris Johnson and finance minister Rishi Sunak have confirmed that a planned increase in British social security contributions from workers and employers will go ahead in April, despite calls to scrap the rise due to the strain on household budgets, Reuters reports.

With surging inflation further intensifying a cost-of-living squeeze, the UK government has been under growing pressure - including from lawmakers within its own party - to delay or cancel a new health and social care levy that will increase the rate of National Insurance by 1.25 percentage points.

Some British papers have speculated that the Prime Minister, who potentially faces a no-confidence vote over parties at Downing Street during COVID-19 lockdowns, might try to secure the base by ditching the rise.

However, in a joint article in the Sunday Times, Johnson and Sunak said, "We must continue to be responsible now, as we deal with COVID aftershocks - and above all with the COVID backlogs in healthcare ... We must go ahead with the health and care levy."

In the 2020/21 financial year, Britain reportedly achieved its biggest budget deficit since World War II; equivalent to 15 per cent of gross domestic product.

In their article, Johnson and Sunak wrote that although they are "tax-cutting Conservatives" they need to be responsible with public finances.

"We believe people are the best judges of how to spend their money. We want to get through this phase and get on with our agenda," they said.

"With healthy finances we will continue to drive business confidence, and with record investment we will lay the foundations for a sustained, long-term, jobs-led recovery."

British inflation in December was its highest in nearly 30 years at 5.4 per cent. Rising energy costs only added to the pressure on household budgets.

Johnson and Sunak said they would continue to look at the best way to support people through the post-pandemic economic recovery and were considering the best medium and long-term plan to improve the security of Britain's energy supply.

Source: Reuters

(Link and quotes via original reporting)

UK Prime Minister Boris Johnson and finance minister Rishi Sunak have confirmed that a planned increase in British social security contributions from workers and employers will go ahead in April, despite calls to scrap the rise due to the strain on household budgets, Reuters reports.

With surging inflation further intensifying a cost-of-living squeeze, the UK government has been under growing pressure - including from lawmakers within its own party - to delay or cancel a new health and social care levy that will increase the rate of National Insurance by 1.25 percentage points.

Some British papers have speculated that the Prime Minister, who potentially faces a no-confidence vote over parties at Downing Street during COVID-19 lockdowns, might try to secure the base by ditching the rise.

However, in a joint article in the Sunday Times, Johnson and Sunak said, "We must continue to be responsible now, as we deal with COVID aftershocks - and above all with the COVID backlogs in healthcare ... We must go ahead with the health and care levy."

In the 2020/21 financial year, Britain reportedly achieved its biggest budget deficit since World War II; equivalent to 15 per cent of gross domestic product.

In their article, Johnson and Sunak wrote that although they are "tax-cutting Conservatives" they need to be responsible with public finances.

"We believe people are the best judges of how to spend their money. We want to get through this phase and get on with our agenda," they said.

"With healthy finances we will continue to drive business confidence, and with record investment we will lay the foundations for a sustained, long-term, jobs-led recovery."

British inflation in December was its highest in nearly 30 years at 5.4 per cent. Rising energy costs only added to the pressure on household budgets.

Johnson and Sunak said they would continue to look at the best way to support people through the post-pandemic economic recovery and were considering the best medium and long-term plan to improve the security of Britain's energy supply.

Source: Reuters

(Link and quotes via original reporting)