Boris Johnson facing Cabinet showdown over ‘sickening’ National Insurance hike
BORIS Johnson faces a showdown this week with Cabinet ministers “sick to the stomach” over a manifesto-busting tax hike.
Chancellor Rishi Sunak is “playing hardball” over plans for a National Insurance rise to pay for old age care.
It comes amid tension between him and the PM over future NHS funding.
The Chancellor wants assurances that the £10billion-a-year levy would also cover the Covid backlog cost without the need to keep finding extra cash.
A separate multi- billion pound cash plan to cover the NHS this winter until the levy comes in next April is also still under discussion.
The PM’s diary is understood to have been cleared for Thursday amid rumours of his first full ministerial re-shuffle in 18 months.
Foreign Secretary Dominic Raab and Education Secretary Gavin Williamson are the favourites to be moved in the shake-up.
Insiders claim that International Trade Secretary Liz Truss is among those angered by the old age care tax — but she is yet to see detailed plans.
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And former Tory PM Sir John Major insisted the Government should take a “straightforward and honest” approach by putting the increase on general taxation.
One Cabinet source said they are “instinctively against” any proposal that would “hit the poorer people harder”.
An NI rise of at least a penny would help bring in an extra £10billion. But another Cabinet insider hoped there would be a “menu of choices” to discuss before a decision is made.
The PM comes face to face with colleagues on Tuesday for the first in-person Cabinet meeting this year as he embarks on walking roughshod over two election vows.
'DOUBLE LOCK'
The state pension rise is also tipped to be restricted as plans to stick to the 2019 “triple lock” vow are abandoned.
Instead, a move is expected towards a “double lock” of raising pensions by the higher of inflation or 2.5 per cent — but not wage rises.
One Tory source said of breaking election promises: “The symbolism is not good for us.”
As MPs return to Westminster tomorrow, a record 5.3million-plus patients are waiting for elective surgery and routine treatment — with 300,000 waiting more than a year for non-urgent care.
Yet a Deltapoll survey for The Sun on Sunday reveals the Tories have an eight-point lead over Labour on the back of the Afghanistan crisis.
And 47 per cent say the PM is doing “well” or “very well”.
