Raise income tax – not national insurance

Editorial: A rise in national insurance contributions, together with increasing energy and council tax bills, will provide a ‘triple whammy’ for many already hard-pressed households

(Dave Brown)

Whether Boris Johnson, Rishi Sunak, Keir Starmer or someone else is at the helm, the government is going to face some unenviable and unpalatable choices. Paul Johnson, director of the Institute for Fiscal Studies, has told The Independent the country must choose between higher taxes for the next 20 years or cutting back the welfare state because it faces a spending black hole of £60bn each year.

He said an ageing population would force politicians to choose between the approach of other western European countries – increasing taxes by another 2-3 per cent of national income – or paring back basic education, health and social care services.

A rise in national insurance contributions, together with increasing energy and council tax bills, will provide a “triple whammy” for many already hard-pressed households in April. The word “crisis” is overused by politicians and the media, but on this occasion it is no exaggeration: the cost-of-living crisis looks set to become the dominant political issue of this year.