Her comment came as Darren Jones, Ms Reeves’ chief secretary to the Treasury, opened the door to an increase to employers’ national insurance contributions, the tax paid by bosses on their workers’ salaries.
“We will have to consider some tax measures at the budget on October 30th whilst honouring that promise to the public not to increase income tax, employee National Insurance or VAT,” Mr Jones told Times Radio.
Mr Jones’ choice of words represents a softening of the Chancellor’s pledge last month to “not increase national insurance”, without caveats. It raises the prospect that a raid on bosses could be on the table.
Bit of a logical stretch to get there. But could be true. Which would mean that they’re gearing up to increase the worst of the three taxes upon income. There’s no cap on it, see? Also, it’s hidden from voters.
Mr Jones’ choice of words represents a softening of the Chancellor’s pledge last month to “not increase national insurance”,
These people are lying cunts?
Who knew?
Pre election: “we have no plans to…..”
Post election: “we didn’t want to do it, but…….”.
And employers’ NI increases will only affect private sector workers: public sector ones will have an x% rise in nominal pay, not total cost of employment.
Every employer needs to make really clear: Your pay rise is low/non-existent this year because the government has taken it
I’m so glad Sir Keir Starmer has no plans to put his flaccid, circumcised cock in our mouths.
@Adolff
Post election: “we didn’t want to do it, but…….”….see what you made us do.
if this happens, I am looking forwards to discussions with clients in the public sector that I will need to be increasing our prices to.
It raises the prospect that a raid on bosses could be on the table.
The idiot has never heard of tax incidence.
In just a couple of months she’s been doling out public sector pay increases like a drunken sailor in a strip club while claiming she had no idea quite how badly the torieeeeees had messed up the economy.
What else is a girl gonna do except perform a complete 180 about promises not to increase taxes? Especially when it’s precisely what she was planning to do all along.
So get your bonuses and dividends paid out before next April. Draw down your pensions and crystallise your gains. Make your property moves quickly because stamp duty is another soft target. The inevitable result will be a record-breaking tax haul in the latter part of 24/25 justifying even more handouts next year.
I don’t think that’s too much of a logical stretch.
Peter Oborne’s book needs a new title…
Mr Jones’ choice of words represents a softening of the Chancellor’s pledge last month to “not increase national insurance”
A softening??
How about a retraction? Or a weaseling?
(I’ll not comment on the split infinitive for fear of nuclear reprisal).
“We will have to consider some tax measures at the budget on October 30th whilst honouring that promise to the public not to increase income tax.
Nearly 40 years on could we be about to see the return of the investment income surcharge?
employers’ national insurance contributions, the tax paid by bosses on their workers’ salaries
As most here will know (but not, apparently, no-longer-very-Torygraph journos), the cost of NICs ultimately falls on the employee.
This a major incentive to replace any surviving contributory pension schemes with non-contributory pension schemes accompanied with a balancing pay cut* as well as the obvious move to spurious self-employment.
The net gain is likely to a fraction of the forecast
*If it’s a DC scheme the pay cut can be equal to the employee contribution (or even 5% greater) and still leave the employee marginally better-off andthe employer significantly better-off, if it’s a DB scheme the calculation is complicated and will vary from one employee to the next but there is still a number that benefits both employer and employee
Once all her tinkerings have failed to save anywhere near enough to make up for her profligacy and she’s hit the borrowing limits, there will be vigorous campaign about ‘changed circumstances’ and ‘necessity’ and ‘the legacy of Tory evil/incompetence/whatever’ and income tax. VAT or NI will rise.
The introduction of a doomed-to-failure wealth tax or something similar may delay this but it is going to happen soon enough.
I’m sure that now Labour is in power the payoff for the new powers granted to the budget responsibility group will be to change the rules whenever needed. The same rules will then become rolled back and cast in stone once Labour are booted out
BniC – The same rules will then become rolled back and cast in stone once Labour are booted out
That’s what the Conservative Party is for, to conserve the harm Labour does and then snigger at you and say there’s no public support for conservative things.