Keir Starmer WON’T rule out National Insurance hikes in shock U-turn on manifesto promise --[Reported by Umva mag]

SIR Keir Starmer has refused to rule out a National Insurance hike for employers despite Labour’s manifesto vowing not to do so. Tory leader Rishi Sunak grilled the PM three times, demanding to know if he would stand by his pledge. BBC/UNPIXSSir Keir Starmer during Prime Minister’s Questions[/caption] BBC/UNPIXSRishi Sunak grills the Prime Minister on his manifesto pledge at PMQs[/caption] But Sir Keir dodged the questions, leaving the door wide open for a tax raid on employers. Labour’s manifesto stated that “Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of income tax, or VAT” . In their first exchange at Prime Minister’s Questions after party conferences season, Mr Sunak said: “Can he confirm that when he promised not to raise income tax, National Insurance or VAT that commitment applies to both employer and employee national Insurance contributions?” Sir Keir replied: “As he well knows I am not going to get drawn on decisions that will be set out [at the Budget]. “We made an absolute commitment in relation to not raising tax on working people. “He of course was the experts’ expert on raising taxes.” Asked the same question again, Sir Keir would only go so far as to say that he would stick to the promises made in Labour’s manifesto. The PM also refused to rule out changing fiscal rules to increase Budget spending power. It comes amid speculation Rachel Reeves could do to potentially unlock up to £57bn in additional spending on infrastructure. Replying to Mr Sunak, Sir Keir said: “This is literally the man who was in charge – 14 years they crashed the economy. What did they leave? A £22 billion black hole.” The Tory leader then told the Commons: “He has opened the door to raising employer National Insurance contributions including on pensions and fiddling the figures that he can borrow more.” Shadow Chancellor Jeremy Hunt also hit out on Twitter: “The Prime Minister has today left the door open to the Labour Party breaking their promises to the British people by raising taxes and increasing borrowing, leaving future generations to pick up the bill and risking higher interest rates. “Keir Starmer and Rachel Reeves should have had the courage and conviction to be honest about the tax and borrowing plans they always planned.” What is National Insurance and what is the difference between employee and employers contributions? NATIONAL Insurance (NI) is a tax on earnings and self-employed profits in the UK that helps pay for state benefits. Both employees and employers must pay NI, but their contributions work differently. Employee contributions are deducted directly from their salary based on how much they earn. Employer contributions, on the other hand, are additional payments that businesses make based on their employees’ wages. This means that for every employee, the company pays extra to the government. Employees’ NI contributions affect their eligibility for benefits like the state pension, while employers’ contributions are just a cost of hiring staff. An increase in employer NI means higher employment costs, which could impact hiring decisions and salaries.

Oct 9, 2024 - 13:37

Keir Starmer WON’T rule out National Insurance hikes in shock U-turn on manifesto promise --[Reported by Umva mag]

SIR Keir Starmer has refused to rule out a National Insurance hike for employers despite Labour’s manifesto vowing not to do so.

Tory leader Rishi Sunak grilled the PM three times, demanding to know if he would stand by his pledge.

a man wearing glasses and a suit holds a folder

Sir Keir Starmer during Prime Minister’s Questions[/caption]

a man in a suit and tie stands in front of a microphone with the words #politicslive above him

Rishi Sunak grills the Prime Minister on his manifesto pledge at PMQs[/caption]

But Sir Keir dodged the questions, leaving the door wide open for a tax raid on employers.

Labour’s manifesto stated that “Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of income tax, or VAT” .

In their first exchange at Prime Minister’s Questions after party conferences season, Mr Sunak said: “Can he confirm that when he promised not to raise income tax, National Insurance or VAT that commitment applies to both employer and employee national Insurance contributions?”

Sir Keir replied: “As he well knows I am not going to get drawn on decisions that will be set out [at the Budget].

“We made an absolute commitment in relation to not raising tax on working people.

“He of course was the experts’ expert on raising taxes.”

Asked the same question again, Sir Keir would only go so far as to say that he would stick to the promises made in Labour’s manifesto.

The PM also refused to rule out changing fiscal rules to increase Budget spending power.

It comes amid speculation Rachel Reeves could do to potentially unlock up to £57bn in additional spending on infrastructure.

Replying to Mr Sunak, Sir Keir said: “This is literally the man who was in charge – 14 years they crashed the economy. What did they leave? A £22 billion black hole.”

The Tory leader then told the Commons: “He has opened the door to raising employer National Insurance contributions including on pensions and fiddling the figures that he can borrow more.”

Shadow Chancellor Jeremy Hunt also hit out on Twitter: “The Prime Minister has today left the door open to the Labour Party breaking their promises to the British people by raising taxes and increasing borrowing, leaving future generations to pick up the bill and risking higher interest rates.

“Keir Starmer and Rachel Reeves should have had the courage and conviction to be honest about the tax and borrowing plans they always planned.”

What is National Insurance and what is the difference between employee and employers contributions?

NATIONAL Insurance (NI) is a tax on earnings and self-employed profits in the UK that helps pay for state benefits.

Both employees and employers must pay NI, but their contributions work differently.

Employee contributions are deducted directly from their salary based on how much they earn.

Employer contributions, on the other hand, are additional payments that businesses make based on their employees’ wages.

This means that for every employee, the company pays extra to the government.

Employees’ NI contributions affect their eligibility for benefits like the state pension, while employers’ contributions are just a cost of hiring staff.

An increase in employer NI means higher employment costs, which could impact hiring decisions and salaries.

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