Jeremy Hunt slams Labour ‘scaremongering’ over National Insurance plan bill – & says it won’t be axed in next Parliament

JEREMY Hunt has accused Labour of “scaremongering” as he revealed National Insurance will not be axed in the next Parliament.

The Chancellor said he wanted to abolish the tax when he announced a 2p cut in NI contributions during the Budget.

Labour said the move would cost £46billion and threaten state pensions.

But Mr Hunt told the Treasury Committee yesterday: “It won’t happen in one Parliament, but it is a long-term ambition.

“If we do that, that will be the biggest tax simplification of our lifetimes.

“Labour is just scaremongering. The value of NIC receipts do not determine the NHS budget or value of pensions.”

Prime Minister Rishi Sunak has previously committed to ending the “unnecessarily complex” system of having both income tax and national insurance.

Labour pointed out that the move to scrap NI would cost the Treasury £46 billion as they called the policy “unfunded”.

They say if pensions or the health service weren’t to be cut, the money would come from borrowing or extra taxes.

Sir Keir Starmer said it “could be 2022 all over again” as he attempted to draw comparisons with Liz Truss’ doomed mini-Budget.

He said: “They tried that under the last administration and everybody else is paying the price.”