The government plans to increase national insurance to help fund social insurance reforms, which could lead to a Tory backlash for Boris Johnson as the cabinet discusses final policy details.
The increase in national insurance would be a violation of the 2019 Tory Manifesto, which could lead to unrest in his cabinet and on the back bench.
Mr Johnson, Health Secretary Sajid Javed and Chancellor Rishi Sink are dismissing the details as the government prepares to announce its long-awaited reforms to social care.
Reports indicate that an additional funding of 5. 5.5 billion has been agreed for the NHS reduction later this year, most of which will cover the backlog caused by the corona virus epidemic. Will be helpful in removing.
However, Downing Street sources said details of the social care plans were being worked out on Sunday night and one day of the announcement was yet to be confirmed.
Former Secretary of State Jack Berry, leader of the Tory MPs’ Northern Research Group, has warned against a policy that caters to older voters in the South.
Mr Barry, MP for Rosendale and Darwin, said: “I don’t think it’s really reasonable for people who are going to work in my own constituency in East Lancashire, perhaps on lower wages than in other parts of the country, to pay taxes. People will move their homes to other parts of the country where house prices can be very high.
He told BBC Radio 4’s Today that since the national insurance was not paid by those who are retired, there is also the question of fair inter-provincial.
“It doesn’t seem right to me – especially after this epidemic where so many people have made great sacrifices to keep people safe, it has particularly affected the youngest, especially to work. “Then we ask the workers to pay the people. Get protection in care.”
He suggested that a better way to raise income tax might be to increase revenue rather than the “jobs tax” of the National Insurance partnership.
“When I was sitting around this cabinet table and Sajid Javed was the Chancellor of the Exchequer who wrote the Conservative Party manifesto, he was very confident in not raising the job tax and I am surprised that when they are formed, Why did he make a kind of demycin conversion? The health secretary saw the job tax as the way forward.
Reports suggest that lifetime contributions to care will be limited to about 80,000 and that National Insurance will be increased by 1.25% to between 10 10 billion and 11 11 billion annually.
Former Tory cabinet minister Sir John Redwood has warned against “stupid” tax increases.
“The job tax is especially stupid when you want to promote a higher and better paying job,” he said.
“If an elderly person goes to live in a care home permanently, it often makes sense for them to sell their former home,” Sir John added.
“Otherwise it will cost money to pay taxes when it is empty and needs maintenance.”
Former Tory Chancellors Lord Hammond, Lord Clark and Lord Lemont have all criticized the plan to increase national insurance.
And Conservative former Prime Minister Sir John Major has warned that the move to target workers and employers is “reactionary”.
Instead, he called on Mr Johnson to adopt a “straightforward and honest” approach to raising general taxes.
Meanwhile, Sir Kerr Starmer has said that Labor will also oppose an increase in the share of National Insurance.
“We need to invest more in the NHS and social care, but National Insurance, the way it does it, affects the low-income earners, it affects the youth and it affects businesses,” he told the Mirror. Affects. “
“We do not agree that there is a proper way to do this. Do we accept that we need more investment? Yes, we do. Do we accept that NI is the right way to do it? No. “We don’t.”
The ministers have privately acknowledged their opposition to the proposal, while Commons leader Jacob Reese was seen expressing his displeasure in his “Weekly Wisdom” column in the Moog Sunday Express.
He cited George W. Bush Sr.’s promise that he would not impose new taxes on his successful bid to become US president before raising taxes and losing the next election to Bill Clinton.
Mr Race Mog added: “Voters remember these words after President Bush forgot.”
But speculation about a cabinet reshuffle by ministers could increase resistance.
One election promise after another could be broken, with ministers reportedly preparing to announce that the state pension triple lock would be temporarily replaced by a “double lock”.
This is because the deterioration in wages during the Corona virus crisis could mean an increase of up to 8% in the salaries of pensioners, while workers will face difficult times.