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TAX RETHINK

Britain CAN afford to delay National Insurance rise thanks to unexpected Treasury cash boost, Boris Johnson told

TAX rises can be delayed until next year thanks to a Treasury cash boost, Boris Johnson was told last night.

Better-than-expected tax receipts meant there was wiggle room to postpone the rise in National Insurance, one expert said.

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Tax rises can be delayed until next year thanks to a Treasury cash boost, Boris Johnson was told last night

It came as the PM refused six times to guarantee National Insurance would increase in April to fund the NHS — although No10 insisted the plan was full-steam ahead.

Paul Johnson, head of the Institute for Fiscal Studies, said: “There is certainly the fiscal room to say, ‘Let’s leave it until next year’.

“If your concern is the cost of living issue, economically delaying isn’t going to have a major effect on what you’re trying to achieve — to pay for health and social care.”

Soaring energy bills and inflation are likely to spark a squeeze on family budgets in April, prompting calls for an urgent rethink of the tax whack.

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Borrowing has been far lower than expected as a feared spike in unemployment at the end of the furlough scheme failed to materialise.

And the strong labour market means the Office for Budget Responsibility reckons the deficit is £7billion less than it forecast in October.

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Ex-Cabinet minister David Davis joined a string of Tory MPs calling for the 1.25 per cent NI rise to be postponed.

The former Brexit minister said it would take away ten per cent of the disposable income of ordinary families.

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But on a visit to Milton Keynes hospital, the PM said: “If you want to fund our fantastic NHS, we have to pay for it — and this Government is determined to do so.”

Downing Street said the Cabinet “stands behind” last year’s decision to put up the NI contributions.

Last night, Chief Secretary to the Treasury, Simon Clarke, gave a full-fronted defence of the plan — but did not mention the April implementation.

Ex-Cabinet minister David Davis joined a string of Tory MPs calling for the 1.25 per cent NI rise to be postponedCredit: PA
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Boris Johnson under more pressure to cut taxes as yet another Cabinet minister tells him to ease burden on hard up Brits
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