Labour Accused of 'Scaremongering'
Jeremy Hunt has criticized Labour for spreading fear about the National Insurance plan, stating that it will not be scrapped in the next Parliament. The Chancellor had initially announced a 2p cut in NI contributions during the Budget, expressing his desire to eliminate the tax.
Long-Term Ambition
Addressing the Treasury Committee, Mr. Hunt clarified, "It won’t happen in one Parliament, but it is a long-term ambition." He emphasized the significance of simplifying the tax system, dismissing Labour's claims that the move would impact NHS budgets or pensions.
Labour's Concerns and Responses
Labour raised concerns about the financial implications of scrapping NI, estimating a cost of £46 billion and warning about potential threats to state pensions. They labeled the policy as "unfunded," suggesting that the money could come from borrowing or increased taxes if essential services are not to be affected.
Prime Minister Rishi Sunak has previously voiced his support for ending the complexity of having both income tax and national insurance, aiming for a more streamlined system.
Labour's Comparison and Criticism
Labour leader Sir Keir Starmer drew parallels between the potential consequences of scrapping NI and past failed economic policies, cautioning against repeating past mistakes. He warned that without proper funding alternatives, the move could lead to adverse outcomes similar to those experienced in 2022.
Did you miss our previous article…
https://hellofaread.com/politics/uk-defence-secretary-warns-britain-must-spend-billions-to-prevent-world-war-three/
