London Daily

Focus on the big picture.
Saturday, Aug 15, 2026

Johnson avoided mass rebellion over tax rise, but anger is growing

Johnson avoided mass rebellion over tax rise, but anger is growing

Analysis: As ‘red wall’ Tories fear unfair impact of NIC rise, No 10 knows social care battle is not yet over
For months, Boris Johnson’s plan to deliver on a pledge to solve the social care crisis was shrouded in secrecy: names were added one by one to a list held by the cabinet secretary of those brought in to develop parts of the policy so that in the event of a leak inquiry, he knew – in the words of one insider – “who to pin against the wall”.

Even the day before the announcement, many cabinet ministers were still in the dark. The key architects – the prime minister; the chancellor, Rishi Sunak; the health secretary, Sajid Javid – had been frantically negotiating a final settlement over the weekend that was just ambitious enough for their nervous colleagues to swallow.

But when the big reveal was finally made on Tuesday – a hike in national insurance raising £12bn a year and taking the tax burden to its highest ever level – the feared mass rebellion melted away.

Discussions around the cabinet were “wide-ranging” with some dissent expressed, cabinet sources admitted – but in the main, sceptical senior members of the government held their tongue, partly due to the dangled threat of an imminent reshuffle.

But despite the lack of any resignations, the anger among Conservative MPs whose affection their leader craves is growing and the looming danger for Johnson will only be compounded by a series of tricky issues over the coming weeks: introducing vaccine passports, cutting the universal credit £20 uplift and extending emergency powers granted under the Coronavirus Act.

“The PM’s moved one notch further down in quite a lot of people’s estimations,” a frontbencher conceded. “He won’t get unlimited chances. He’s going to try and make me eat shit for a number of things, having just made me eat shit over national insurance contributions (NICs) and I’ll probably let him off – but it won’t be forgotten.”

While Downing Street will have considered the week to have gone better than expected and are privately relaxed about restless MPs (so long as they remain anonymous, limiting the potency of such attacks), No 10 are wary the battle over social care is not yet over.

Labour has just regained a two-percentage-point lead over the Conservatives for the first time since January in a YouGov poll, and there are concerns the £12bn raised through the NICs increase will not eliminate the NHS backlog before the money is meant to begin shifting to social care in 2023. “Red wall” Tories have begun speaking openly about the unfair impact they expect the tax to have on poorer communities. And in the two years before the £86,000 social care costs cap comes into effect from October 2023, many people will lose their home – threatening yet more damaging headlines. As all those effects are felt, and the next general election draws closer, pressure on Johnson will grow.

Johnson had hoped to unveil the social care reforms before the summer recess in July. But that was put on hold when he and Sunak were forced into self-isolation. They had agreed a spending cut was not an option. “Rishi kept up the argument that it was his duty to leave public finances in a strong position for the next generation, so borrowing more would have been irresponsible,” a source with knowledge of the Treasury discussions said. “NICs was agreed pretty early on in the thinking that it was the only viable option to raise the quantity of money needed.”

The idea of badging the tax rise as a new “health and social care levy” was also agreed before the summer. Over the ensuing weeks, negotiations continued over the level at which it should be set, with Javid arguing for more spending, aided by hair-raising predictions that NHS waiting lists could balloon to 13 million.

Johnson’s team believed that while raising taxes – and directly breaking a manifesto promise – may be unpopular with voters, allowing millions of people to go without the treatment they needed would be a political disaster.

At least three cabinet ministers – Jacob Rees-Mogg, Liz Truss and David Frost – are understood to have voiced concerns at the Conservatives being at risk of losing their status as the party of lower taxation. However, the NICs rise wasn’t “enough of a red line” for them, several government sources admitted. One said the cabinet understood it was a personal priority for the prime minister, and that by raising NICs now, there were three years left in the run-up to the next election where Johnson and Sunak may look to cut taxes elsewhere.

In an attempt to shore up support before Wednesday’s vote, the prime minister rang around members of the 2019 Tory intake, among whom he has a huge amount of goodwill because they feel they owe their place in parliament directly to him. But some still rebelled, and more traditional Tories are becoming increasingly disfranchised.

“I’m thinking of joining the TaxPayers’ Alliance,” a senior government source said, in a reference to the lobbying group for lower taxes. Another insider said Johnson needed to “work out what post-pandemic Conservatism means – because if I was comparing this government with Harold Wilson’s [Labour government], there’s not much in it”.

A Downing Street source said Johnson came back to No 10 after announcing the policy and hearing MPs’ reactions on Tuesday and said: “Now we’ve got to get on with this, we’ve got to get it done: we’ve got to make sure that we spend every penny well and people get the treatment they need.”

Some Conservatives have also been buoyed up by what they see as Labour’s disarray over social care, with Keir Starmer criticising the NICs rise but unable to set out his own alternative.

A briefing pack given to Tory MPs defending the levy on the media rounds revealed the lines of questioning and attack they anticipated, however: “Isn’t this just piling costs on to businesses / effectively a jobs tax at a time when businesses are only just emerging from the pandemic? Why are you raising tax on hard-working people to subsidise the wealthy? Why don’t you use income tax which is more progressive and taxes broader sources of income?”

Apart from secrecy over the policy – which some said was the highest since the days of Brexit – another major factor in keeping would-be rebels on side was believed to be the suggestion of a reshuffle.

All-staff briefings in departments were planned, events introducing ministers were well-advanced and office space in No 10 was booked out – all on the presumption Johnson would carve out major changes to his top team on Thursday, which Downing Street did not deny at the start of the week.

It was dubbed the “heist of the century” by an official when the reshuffle failed to materialise. The fear among senior Conservatives is that the same threat will be dangled over their heads for weeks, or even months.

“We won’t keep our powder dry indefinitely,” one warned.
Newsletter

Related Articles

0:00
0:00
Close
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
×