London Daily

Focus on the big picture.
Friday, Jun 26, 2026

Boris Johnson squeezes working people in national insurance hike

Boris Johnson squeezes working people in national insurance hike

The PM repeats his line ‘But a global pandemic wasn’t in our manifesto, either’ as he announces tax rises
The prime minister, once again, had to level with us. Flanked by his chancellor and health secretary, he kicked off with some truth bombs. NHS waiting lists would get worse before they got better. Social care wouldn’t improve without more money, and that money must come from tax.

It couldn’t come from more borrowing, he implored. Rishi Sunak chimed in later to deepen the point: debt was irresponsible and dishonest. Sajid Javid couldn’t have agreed more strongly. What was the point in hearing from all three of them, one might wonder, when they were all of exactly the same mind while making a very simple point, like Newsround-does-tax?

They need money. They can either borrow it or tax the population and they – with heavy hearts – chose tax. The prime minister had to choose it because that was the chancellor’s plan; the chancellor had to choose it because that’s what the health secretary demanded. They passed the blame quite delicately from each to each, while remaining in compete accord. It was, at times, quite dainty.

There was some dicey logic going on, though, and it didn’t take a genius to rootle it out. This announcement, that national insurance contributions would be going up by 1.25 percentage points and it just couldn’t be helped, relied on the concept of taxation as one amorphous blob.

The Conservatives don’t like tax any more than you do, verily they like it considerably less than you do, which is why they promised in their manifesto never to raise it. “But a global pandemic wasn’t in our manifesto, either,” said the prime minister, clearly cock-a-hoop with this line, which he had already delivered to parliament earlier in the day. To those two certainties of life, death and taxes, we can add a third: the Conservatives will deliver.

The problem is, tax is nothing like a blob; you can tax assets or earnings, individuals or corporations, rentiers or workers, you can tax inheritance or the minimum wage. A government can really do a huge amount of prioritising between one group or generation and another with this varied and flexible instrument.

So, buried within Johnson, Sunak and Javid’s hopeful play – social care had to be paid for, and the only decision they’d made was whether to pay now or pay later – was a very clear statement of priorities.

Most important, to Johnson’s mind, were the “millions, millions [who] live in fear that they could be among the one in seven” whose care costs exceed £100,000. To pacify these millions and millions, costs will be capped at £86,000 once the new system of social care is in place in 2023.

But millions and millions live in fear that they won’t make rent, or be able to turn the heating on, or feed themselves. It’s quite a peculiar order of business, to hike up taxes on someone earning £20,000 in order to allay the hypothetical health anxieties of a statistically minded asset holder who is terrified of losing their 100 grand.

This detail was not lost on any of the journalists, who came in again and again to ask why – Laura Kuenssberg went first – the cost would be “overwhelmingly borne by working people while the expensive properties of wealthy pensioners are protected”. She threw the PM a bone, at least, by acknowledging the dividend tax, also going up 1.25 percentage points and falling on assets. Still, she concluded, “people who have wages and no assets are the ones who will pay, here”.

At this point, the prime minister’s brain went rogue. “Every family in this country faces this risk. Everybody needs our wonderful NHS. Everybody has an aunt or a friend.” And so the hierarchy of citizens slowly took shape: at the top, the ones who were worried about their houses; next, people who have aunts, or friends; third – a hat tip here for Sunak, who never stops thinking about the future – the as-yet-unborn worker, who shouldn’t have to mop up debts we incur today. Then, at the very bottom, regular people with salaries that they’re trying to live on.

“The Institute for official Fiscal Studies themselves said today that this is a progressive and broad based measure”, Johnson reiterated, which is weird, since the IFS pointed out immediately that working age people on £28,000 will now be paying almost twice as much in assorted taxes as a pensioner on the same income. It doesn’t sound that progressive, unless “progressive” is like the ace in a deck of cards for alternative economists: it can be high or low, progressively better or progressively worse.

What they always say about national insurance – apart from how crazy it is, to have a tax sliding downwards, so that people earning more than £50,000 pay a lower rate – is that you can put it up and nobody will notice. It’s like boiling a frog: if you put the working-age taxpayer in cold, they won’t feel the temperature rise until they’re already unconscious. Something about the press reception, however, tells me that the frogs have got wise.
Newsletter

Related Articles

0:00
0:00
Close
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
British Food and Drink Exports Fall to Decade Low Amid Trade Friction and US Tariffs
Great Britain Grid Operator Spends £10 Million to Stabilize Electricity Supply During Heatwave Demand Surge
UK Parliament Committee Calls for Urgent National Adaptation Strategy as Extreme Heat Strains Public Infrastructure
Record-Breaking Heatwave Pushes England’s National Health Service to Critical Incident Status as Hospitals Struggle With Surge in Emergencies
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
×