Chancellor Raises National Insurance to Fund NHS Amid Controversy
- Sir Keir Starmer defended himself against accusations of lying regarding tax policy ahead of Rachel Reeves' first Budget announcement.
- The anticipated National Insurance hike of nearly two percent primarily affects private sector employers, raising concerns within the business community.
- Critics warn that the proposed tax increase may jeopardize jobs and wages, contradicting Labour's previous promise to protect 'working people'.
In Samoa on October 26, 2024, Sir Keir Starmer faced accusations of dishonesty as anticipation builds for a significant tax increase proposed by Chancellor Rachel Reeves in her first Budget. The expected rise of nearly two percent in National Insurance Contributions will primarily affect employers in the private sector. Starmer reiterated Labour's commitment to not raise taxes on 'working people', although critics argue the definition of this term has shifted post-election. Businesses expressed concern regarding the tax hike's potential negative impacts on growth, wages, and hiring prospects. Shadow Chancellor Jeremy Hunt warned that this tax increase could lead to a job loss and a decrease in wages, highlighting fears within the business community about the economic consequences of the policy.