Prime minister Sir Keir Starmer has refused to rule out increasing employers’ national insurance contributions in the upcoming Budget – despite Labour’s pledge not to raise taxes on working people.
The government has faced questions on whether its commitment not to raise national insurance covers employers’ contributions as well as those by employees.
When asked for clarity in an interview with the BBC, Sir Keir said: “We were very clear in the manifesto that we wouldn’t be increasing tax on working people and we expressly said that that was income tax, that was NICs etc.”
After being further pressed on whether employers could face the tax rise in the Budget on 30 October he reiterated that Labour would not “raise tax on working people” and they would “keep promises we made in the manifesto”.
The prime minister’s stance comes after Rachel Reeves was criticised on Monday for refusing to rule out a rise in employer national insurance contributions.
Institute for Fiscal Studies director Paul Johnson said on Monday that a hike in employer NI contributions would be a “straightforward breach” of the Labour manifesto.
Ex-Bank of England chief Mervyn King urges Rachel Reeves to raise national insurance in Budget
Former Bank of England governor Mervyn King has made a dramatic intervention warning Rachel Reeves that she must raise national insurance in her Budget on 30 October.
Our political editor David Maddox reports
Joe Middleton15 October 2024 13:45
Watch: Keir Starmer refuses to rule out raising national insurance contributions
Joe Middleton15 October 2024 13:30
Unemployed to be given weight-loss jab to help them back into work
Unemployed people will be given weight-loss jabs to assist them back into work in a trial.
The UK’s life sciences sector will receive £279 million from drugs giant Eli Lilly, to invest in developing new medicines and ways to deliver treatment.
Amanda Pritchard, Chief Executive of the NHS praised weight-loss drugs as “game-changers” in supporting people to reduce their risk of life-threatening conditions.
Joe Middleton15 October 2024 13:14
Hospitals programme will be delivered on ‘credible’ timetable, says health secretary
Health secretary Wes Streeting has said the new hospitals programme will be delivered on a “credible” timetable.
The government announced in July that all projects within the programme promised by the previous Conservative administration would be placed under a spending review, with 25 schemes still under consideration.
Mr Streeting noted a proposed redevelopment is “desperately” needed for Whipps Cross Hospital, in east London, which serves his Ilford North constituency.
He told Tory former minister Sir Iain Duncan Smith: “That is why, in common with so many Members right across the House, I am absolutely furious that the previous government had a new hospitals programme whose timetable was a work of fiction and where the money runs out in March.
“The assurance I can give him, his constituents, my constituents and the constituents of every other MP across the House whose constituents are waiting for news on the new hospitals programme, is we will deliver that programme, we will deliver it on a timetable that is credible and a programme that is funded, giving our constituents the clarity that they deserve, the consistency that they deserve and also rebuilding faith in government amongst our construction industry and supply chain.”
Joe Middleton15 October 2024 12:47
Analysis: Reeves will need lawyer’s language to break national insurance pledge
During the election Labour made a clear promise “not to raise taxes on working people”. This specifically included income tax, VAT and national insurance contributions.
The problem Rachel Reeves has as her first Budget approaches on 30 October is that somehow she has to pay for an estimated £25bn in spending commitments and encourage economic growth with little room for manoeuvre.
Her former Bank of England mentor Lord Mervyn King has warned her against extra borrowing even by rewriting the fiscals and suggested she raises national insurance instead to invest.
It is clear from the prime minister’s words this morning that national insurance rises on employer contributions is now a strong possibility. But does this mean a breach in the manifesto promises from just over 100 days ago?
The Tories say yes – they would – but so does the independent Institute for Fiscal Studies director Paul Johnson.
It appears that Labour are planning on using a lawyer’s way out – appropriate for the prime minister – to emphasise that their pledge was “for working people” not employers.
David Maddox15 October 2024 12:22
No 10 rules out scrapping voter ID
Downing Street has ruled out scrapping voter ID before the May local elections next year.
Asked whether there was any prospect of the rules being abandoned soon, the prime minister’s official spokesman said: “Not ahead of the May local elections.”
Number 10 acknowledged “inconsistencies” in some voter ID rules after being asked whether it would be adding any kind of cards that young people can use.
Asked whether the government was committed to the principle of voter ID, he said: “There is a review of voter ID under way to address some of the inconsistencies in voter ID rules.”
In an earlier post today we reported that the government have changed the rules so that veterans’ ID cards will be a valid form of identification for upcoming elections.
Joe Middleton15 October 2024 12:16
I was Rachel Reeves’s boss at the Bank of England – here’s what she should do now
In an open letter, former governor of the Bank of England Mervyn King shares his advice for the chancellor ahead of her first ever Budget
Joe Middleton15 October 2024 12:03
EXCLUSIVE: Ex-Bank of England chief Mervyn King urges Rachel Reeves to raise national insurance in Budget
Former Bank of England governor Mervyn King has made a dramatic intervention warning Rachel Reeves that she must raise national insurance in her Budget on 30 October.
According to the Institute of Fiscal Studies (IFS), the chancellor has an estimated £25bn black hole to fill in order to meet Labour’s spending commitments.
But in an open letter published in The Independent, Lord King warns her against higher borrowing.
Our political editor David Maddox reports
Joe Middleton15 October 2024 11:58
Veterans’ ID cards will be accepted for voting in elections, ministers announce
Veterans’ ID cards will be a valid form of identification for upcoming elections, ministers have announced.
The government is also undertaking a wider review of the voter ID policy, which was introduced by the Tories and has been tested at local elections and this summer’s general election.
Under the rules, voters have to present an acceptable form of ID to be able to cast their ballot.
These include passports, driving licences, Proof of Age Standards Scheme (Pass) cards, Blue Badges and some concessionary travel cards.
In May’s local elections, some veterans were dismayed that their ex-forces ID cards were not included in the list of acceptable forms of identification, which led to an apology from then-veterans minister Johnny Mercer.
On Tuesday, the government brought forward changes to the law in Parliament via a statutory instrument, which will add the veterans’ card to the list of acceptable ID.
The news was welcomed by the Royal British Legion, which said veterans had “found it frustrating that they were unable to use their Armed Forces Veteran Card as voter identification”.
Joe Middleton15 October 2024 11:24
David Cameron hits back at claim he threatened Boris Johnson over Brexit backing
David Cameron has hit back at the claim he threatened to “f***” Boris Johnson up forever if he backed Brexit in the 2016 referendum, saying he finds it “hard to believe”.
Lord Cameron channelled the late Queen Elizabeth II in saying “recollections differ” after Mr Johnson had claimed those were his “exact words”.
Speaking out for the first time since Mr Johnson made the explosive claim, Lord Cameron said: “I find that hard to believe.”
Our political correspondent Archie Mitchell reports
Joe Middleton15 October 2024 11:12