London Daily

Focus on the big picture.
Sunday, Feb 01, 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
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
×