London Daily

Focus on the big picture.
Thursday, Jul 30, 2026

National Insurance: Opposition MPs urge rethink on April tax rise

National Insurance: Opposition MPs urge rethink on April tax rise

Opposition MPs have accused the prime minister and the chancellor of ignoring struggling families, after they confirmed taxes would rise in April.

Writing in the Sunday Times, Boris Johnson and Rishi Sunak insisted their £12bn National Insurance increase would go ahead, despite opposition.

Labour, the Lib Dems and some Tory MPs are urging a rethink, arguing workers cannot afford more tax at the moment.

Foreign Secretary Liz Truss the hike was needed due to Covid spending.

She said the Tories wanted to be able to lower taxes to boost the economy - but government support during the pandemic had to be "paid back".

Under the plans, employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance from April 2022 for a year.

From April 2023, the extra tax will be collected as a new Health and Social Care Levy. Legislation to set it up was approved in Parliament in September.

The government says the money will initially help clear NHS backlogs, and then be moved into social care system over the next three years.

But critics - including some Conservatives - say the rise will place a tougher burden on the lower-paid and should be scrapped.

There is also concern about the timing of the increase, with the cost of energy soaring and rising inflation also pushing up the cost of food and other bills.

Business groups have also warned about the effect of the rise on small companies and the wider economy.


Shadow levelling up secretary Lisa Nandy called on the government to "rethink" the planned rise, adding it would see people's incomes "squeezed even more".

She told BBC One's Sunday Morning programme: "You can't possibly hit people with more taxes at the moment. It's just simply not possible for a lot of people to survive."

"The stories that I'm hearing from people across the country about the sacrifices they're going to have to make are enormous."

She added Labour would be "doing everything that we can over the next few weeks to try and appeal to Tory MPs' consciences".

'Number one priority'


The Liberal Democrats have described the National Insurance rise as unfair.

Party leader Sir Ed Davey called for action on energy prices, including more support for poorer families paid for through a "Robin Hood" tax on fuel companies.

He accused the prime minister of being "focused on saving his own skin" over the No 10 lockdown parties scandal, rather than "taking action".

Robert Halfon, one of the Tory MPs calling on the government not to go ahead with the rise, said ministers should make the cost of living their "number one priority".

Speaking on BBC Breakfast, he suggested money for the NHS could instead be raised from the taxes on capital gains - profits made from selling certain assets - or by raising taxes on oil companies.

Senior backbench Tories Robert Jenrick and Mel Stride have also called for the increase to be delayed. Former cabinet minister Mr Jenrick saying that 2022 would already be "exceptionally hard" for families.


Defending the rise in the Sunday Times, Mr Johnson and Mr Sunak said it was "progressive" because higher earners pay more.

They described themselves as "tax-cutting Conservatives" and "Thatcherites, in the sense that we believe in sound money".

But they added: "There is no magic money tree."

The article will be seen as a show of unity between the pair, after widespread criticism of Mr Johnson over claims of parties in Downing Street during lockdown.

'Very difficult situation'


Mr Sunak is a leading candidate to replace Mr Johnson if a leadership contest is triggered before the next election.

Foreign Secretary Liz Truss, who is also seen as a possible leadership candidate, defended the tax rises but accepted they are "never popular".

Also speaking to the Sunday Morning programme, she said the country was in a "very difficult situation" because of money spent supporting the economy during Covid.

"As soon as possible, we want to be in a position to lower our tax rates, we want to drive economic growth, because ultimately that is what will make our country successful," she added.

"But we do face a short-term issue, which is that we have spent significant amounts of money dealing with the Covid crisis that does need to be paid back."


What the rise in National Insurance could mean for you


Newsletter

Related Articles

0:00
0:00
Close
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
Ofgem Proposes Steep Grid Connection Charges for New Data Centers
Major Cyberattack Compromises UK Education and Police Data
Government Reviews Jurisdiction Over Crimes Involving US Military Personnel
England Declares Widespread Drought After Record Dry July
UK Commits £8.4 Billion to Dreadnought Nuclear Submarine Program
Zuckerberg Opposes US Ban on Chinese AI Models and Warns of Regulatory Capture
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
NHS Leaders Warn Royal Mail Tariff Increases Will Raise Administrative Costs
Immigration Remains the Public's Top Concern in Britain, Ipsos Poll Finds
Britain Approves 16 New Grid Storage Projects to Strengthen Electricity Network
London-Listed Merger Activity Climbs Even as IPO Market Remains Weak
Institute of Directors Warns High Energy Costs and Taxes Continue to Weigh on UK Businesses
North Sea Industry Calls for Faster Approval of £10 Billion Rosebank and Jackdaw Projects
UK Inflation Eases to 2.6% but Higher Energy Costs Could Renew Price Pressures
Burnham Holds Talks With Saudi and Qatari Leaders on Middle East Security and Energy
Burnham and Zelenskyy Announce UK Electronic Warfare Technology Cooperation During London Visit
Prime Minister Andy Burnham Launches Cross-Party Push for Social Care Reform in England
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
×