Dear Chief Secretary to the Treasury,
I'm afraid to tell you there's no money left.
Signed, Liam Byrne

(Outgoing Labour Chief Secretary to the Treasury. May 2010)

Monday, 29 March 2010

Tories to block National Insurance rise

Tories to block National Insurance rise
The multi-billion-pound tax pledge, to be made by David Cameron and George Osborne, is intended to open up “clear blue water” between the parties.

Tory insiders said it would form the centrepiece of the Conservative election campaign and make seven out of 10 workers better off.

National Insurance contributions are due to rise by a penny in the pound from April next year under Labour plans.
Read more here

It'll no doubt be rubbished by all and sundry, including BBC, but it's a tactic and it's an attack, and it takes less out of wage packets.

Now they need to find a way of getting rid of the 10p tax band which could also cancel the need for tax credits and so cut out a whole layer of bureaucracy.

(Mr Darling may have thought everybody would have forgotten he'd announced this rise in his 'Pre-Budget Report' last year, and it's why he announced it over a year in advance, but we haven't forgotten.
And this is why there should be no rise in National Insurance next year - it'll lead to higher employment costs (including within the public sector) and probably also lead to job losses.)

Just noticed that Dizzy has already blogged about this Tories pledge not to cut National Insurance He explains that
The fact is the Tories have not promised a tax cut at all, they've promised to conserve the status quo. Shocking huh? Of course, you can guarantee that the Tories "evidence-based" enemies will soon be deploying the Ul = c \ uc © equation and telling us how many less teachers, nurses and policemen that we don't yet have we'll not have.
You'll need to read his blog to see the explanation.

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