Labour, business leaders and Conservative MPs have urged the government to bring in measures to help people struggling with the cost of living, which has increased dramatically this year and is expected to rise further.
Get 'better paid job' for protectionOn 6 April, National Insurance contributions were increased by 1.25 percentage points to 13.25%.
Labour has called for the Conservatives to reverse the hike as families struggle with the cost of living, and said it would replace the rise with a windfall tax on oil and gas companies. The government has resisted calls to reverse the rise, with Mr Johnson saying the rise will help the NHS grapple with the pandemic backlog.A huge swathe of Tory MPs want this tax rise scrapped but Boris Johnson wants it to pay for social care and Rishi Sunak wants it to balance the books after that new spending commitment.The chancellor said he would cut the basic rate of income tax from 20 to 19 pence in the pound before spring 2024.
However, Paul Johnson, the director of the Institute for Fiscal Studies , said raising the National Insurance rate while cutting income tax"drives a further wedge between taxation of unearned income and earned income".Rishi Sunak has already promised to cut income tax before the next election. However, this doesn't help the lowest income brackets who are below the threshold and don't pay income tax or are on fixed incomes like pensioners.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Truss damaging UK's reputation with NI Protocol 'threats', Labour MP warns'Our international reputation and trade go hand-in-hand.' Labour's NickTorfaen warns the Government unilaterally gutting the Northern Ireland protocol could stop Britain getting post-Brexit trade deals. ShelaghFogarty
Read more »
Labour to try to force Commons vote on North Sea windfall taxParty to put ministers on spot over the cost of living amid signs of support for policy on Tory benches
Read more »
Cost of living crisis: 'People heating one room with firewood'People working and living in rural Norfolk talk about the cost of living crisis.
Read more »