Good morning,
Since reports leaked last week that Boris Johnson was set to inflict a tax rise on millions of Brits, the TaxPayersâ Alliance has worked around the clock to fight taxpayersâ corner and highlight the flaws in the PMâs plan to reform health and social care.
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After our late night rapid reaction last Thursday, we moved to pick apart the plans. As MPs returned to Westminster on Monday, their phones and emails were pinging off with our list of quickfire questions that journalists and politicians should be asking the PM about his policy. Senior broadcasters and members of the Cabinet were seen taking notes!Â
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In the run-up to the vote in the House of Commons, our team went into overdrive, hammering MPs with the case against the rise and with the TPA media studio in constant use. Our spokespeople were on TV and radio stations, morning noon and night rebuffing the prime ministerâs tax ploy. From LBC to ITV (and even an appearance on German broadcaster Deutsche Welle) we made it crystal clear that hardworking taxpayers will foot a punishing bill from a hike in national insurance. Our analysis that this would take the tax burden to a 70-year high appeared on the front page of nearly every national newspaper.
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As more details were published, our research team sprang into action and pored over reams of government information. Their expert analysis laid bare the unfair impact of the new health and social care levy, including on the Toriesâ new âred wallâ voters. Poorer workers will pay an even higher proportion of their income in national insurance. Similarly, non-retired individuals will have a national insurance bill more than 7 times greater than retired individuals at ÂŁ4,662. You can read more detail in todayâs Sun on Sunday, Sunday Express and Mail on Sunday.
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The rise of 1.25 per cent doesnât tell the full story either. If you take an individual earning ÂŁ20,000 a year, theyâll see their yearly national insurance payment increase by ÂŁ130 - an increase of over 10 per cent on what theyâre currently paying. We used hard-hitting social media graphics to bring home the point to the public.
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Itâs not just employees but employers who will be hit hard too. Thereâs a reason that employersâ national insurance is called the âjobs taxâ - it will increase the cost of hiring at a time when we need employment to bounce back. This tax rise will only stifle job creation and wage increases.
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The TaxPayersâ Alliance has a long history of making the case against tax rises like these. When the Labour party raised national insurance back in 2002 to help fund social care, approximately ÂŁ40 billion of additional revenue was raised. But shockingly, it is estimated that half of that was absorbed by pay and price increases. And who was it that called out this NI hike at the time? None other than Boris Johnson. Our team trawled through the parliamentary record-keeping system, Hansard, to show what a damascene conversion the PM has undergone.
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Speaking at the budget debate in April 2002, Mr Johnson said unequivocally that ânational insurance increases are regressiveâ and accused the Labour government of being âdeeply wedded to tax and spendâ. On the eve of the vote, we were reminding anyone and everyone of his words, with our blog being sent to over a hundred uneasy Tory politicians. Our simple but devastating social media graphics of Borisâ quotes cut right to the heart of his hypocrisy, and the posts were widely shared, not least by the political editor of The Sun newspaper. Â
The final tool in our armoury was our viral petition. A big thank you to everyone who signed our petition to âStop the Tory tax riseâ, which was shared by renowned political blogger Guido Fawkes within minutes of being created.Â
Unfortunately, all this wasnât enough. Though we were able to persuade hundreds of Labour and Conservative MPs to oppose it, parliament approved the rise by a large margin.Â
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We all know that a solution to the social care problem has been long overdue, but the prime ministerâs plan to increase taxes on workers and employers is completely wrong at a time when households and businesses are doing their best to bounce back from the pandemic.
There is no doubt that provisions are needed, but the solutions should start with ramping up efficiencies and eliminating waste. Just this week weâve seen the NHS is hiring 42 new managers on salaries of up to ÂŁ270,000! And when the TPA looked into this a few years ago, we found that ÂŁ5.9 billion could be saved in the social care sector by embracing technology and automation. That wonât be enough in isolation, but weâve seen no evidence that the government has considered a cost-side solution to the problem.
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It's not been a good week for taxpayers, but we're not giving up! Â People power matters. Please forward this email to your friends and family. If we're to stop more tax rises in future we need more people to see the impact we can have, and make their voices heard in Westminster.Â
The TaxPayersâ Alliance is leading the charge against tax rises. Brits deserve better value for money from their hard-earned money. We will continue to call on the government to eradicate wasteful spending and to cut taxes.
Thank you for your support,
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Harry Fone
Grassroots Campaign Manager
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