By NewsBlogger Prime Minister Rishi Sunak has proposed cutting benefits to fund the abolition of national insurance contributions for workers by the end of the next parliament, facing both support and criticism from various stakeholders.
At a glance
- Rishi Sunak proposes cutting benefits to fund the abolition of national insurance contributions.
- Jeremy Hunt recommends 2p reduction in national insurance starting in April.
- Sunak aims to simplify the tax system by eliminating double taxation of work.
- Labour criticizes plan to abolish NICs as an unfunded promise.
- Concerns were raised about the sustainability of abolishing NICs without a comprehensive funding strategy.
The details
Prime Minister Rishi Sunak has put forth a proposal to cut benefits in order to fund the abolition of national insurance contributions for workers by the end of the next parliament.
Sunak has stressed the potential for substantial progress in eliminating NICs during the upcoming parliamentary term.
He plans to seek input on new strategies to decrease working-age benefits to continue reducing taxes sustainably.
In addition, Jeremy Hunt has recommended a 2p reduction in national insurance starting in April, with a commitment to ultimately eradicating it entirely.
Sunak aims to simplify the intricate system of having both income tax and NICs to end the double taxation of work.
However, Labour has criticized the plan to eliminate national insurance contributions as an unfunded promise.
The Institute for Fiscal Studies has also provided input, stating that the pledge to abolish NICs may not be viable without a comprehensive funding strategy.
Sunak has pointed out that NICs have already been decreased by a third in two separate instances over the past six months.
It is suggested that reducing the welfare bill could be crucial in financing the commitment to abolish NICs.
Moreover, Sunak has expressed worry about the high number of working-age individuals currently deemed unfit to work.
Despite implementing the 2p national insurance cut, it has not significantly impacted the Conservative Party’s election prospects.
According to an Opinium poll, Labour currently leads the Tories by 16 points.
In conclusion, while receiving both support and criticism, the proposal to scrap national insurance contributions remains a central topic in the ongoing conversations regarding tax reform and welfare policy in the UK. Policymakers must address the concerns raised by various stakeholders and present a comprehensive plan to ensure the sustainability and effectiveness of such significant tax changes.
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| independent.co.uk |
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| – Prime Minister Rishi Sunak suggested cuts to benefits could fund the abolition of national insurance contributions for workers by the end of the next parliament – Sunak insisted that significant progress could be made towards eliminating NICs during the next parliament – Sunak intends to consult on new plans to reduce working-age benefits to keep cutting taxes sustainably – Jeremy Hunt proposed a 2p cut in national insurance from April with a promise to get rid of it altogether eventually – Sunak wants to end the complex system of having both income tax and NICs – Labour criticized the plan to end double taxation of work by scrapping national insurance as an unfunded promise – The Institute for Fiscal Studies said the pledge was not worth it unless accompanied by a funding plan – Sunak mentioned that NICs have been cut by a third in two events over six months – Cutting the welfare bill could be key to funding the pledge to abolish NICs – Sunak expressed concern about the number of working-age people signed off as unfit to work – The 2p cut in national insurance has not significantly impacted Tory election hopes – An Opinium poll showed Labour 16 points ahead of the Tories |
