Boris Johnson, National Insurance: Boris Johnson warns that tax increases could ‘choke coronavirus recovery.

Sajid Javid was interviewed about Universal Credit and National Insurance

Boris Johnson, Prime Minister of the United Kingdom, confirmed this week that he will not honor a Conservative pledge. From April next year, National Insurance contributions will rise from 12 percent to 13.25 percent, as part of Government plans to reform the health and social care system. MPs voted last night to support the plan by a majority of 319 votes to 248.

Boris was subject to a lot of criticism from Conservative backbenchers that his plan would be unjust for younger workers and those with lower incomes.

This means that someone who earns PS20,000 per year will have to pay an extra PS130 to the IRS, and another person earning PS80,000 will need to pay PS880 more.

The new plans will allow those earning less than PS9564, to not pay National Insurance.

The UK is recovering from the coronavirus pandemic. There are thronging football stadiums and music festivals. However, Prime Minister Tony Blair was advised not to increase taxes prior to his announcement.

READ MORE: Pensioner accidentally sends PS38k to stranger and faces losing home

Boris Johnson was told tax increases could “choke off” recovery from the coronavirus epidemic. (Image: GETTY)

What National Insurance does. (Image: Express Newspapers)

Now, the UK will have its highest taxes levels since World War II.

Johnny Leavesley, chairman of Midlands Industrial Council is one of the largest donors to the Conservative Party.

In July, he told The Telegraph that an increase in tax could slow down the recovery, regardless of whether it be corporate tax, income tax or National Insurance.

He said: “Rishi Sunak has been the perfect Chancellor for the pandemic, generously supporting what has been necessary to keep the economy alive, but now he needs to embrace Thatcherite principles by limiting state spending and cutting taxes to stimulate economic growth.”

Yesterday’s vote by MPs was on the plan. (Image: GETTY)

Sunak was urged to raise the threshold for National Insurance Contributions in order to help the lowest waged and to abandon the plan to increase corporation tax.

Leavesley cautioned: “Businesses outside of the leisure industry have performed well during the pandemic.

The leisure industry will rebound as the lockdown eases.

We need to see economic growth and economic recovery in order for the state’s debt and spending to be paid.

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The UK’s most expensive places to buy. (Image: Express Newspapers)

We are already heavily taxed, and any tax increases this fall will halt a recovery that we desperately need.

According to a leading economist, the British economy was growing at an unprecedented pace after World War Two. It could be back at pre-pandemic levels before the year ends.

EY Item Club forecasts GDP growth of 7.6 percent after last year’s decline of 9.8 percent.

As evidenced by the UK’s 4.8 percent economic growth, all sectors saw expansion during the second quarter 2021.

In their manifesto for 2019, the Conservative Party promised not to increase taxes. (Image: GETTY)

Alexander Termerko (another party donor), who gave the Tories approximately PS700,000.000 said that it was a mistake to increase taxes.

“As both a donor to the party and an activist, tax increases undermine my party’s manifesto which emphasizes fiscal responsibility and reducing taxes.”

According to him, businesses will be unable to compete globally as a result and that the increase will “squander many of our benefits after Brexit”.

Critics have suggested that Boris is at risk of losing support from Conservative voters amid criticisms by his backbenchers.

Publited at Thu, 09/09/2021 08:48:00 +0000

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