National Insurance: Boris Johnson warned hike could create ‘significant backlash’ | Personal Finance | Finance
But many are taking issue with the idea of a National Insurance hike, including Phillip Hammond, who once held the country’s purse strings. Mr Hammond served as Chancellor under then-prime Minister Theresa May, between 2016 and 2019. He was well known for suggesting the Government may begin a reduction in measures of austerity.
Mr Hammond communicated his opposition to the idea of a National Insurance tax hike, joining a number of senior Conservative politicians who oppose a rise to the levy to fund social care. This includes former Conservative leader Iain Duncan Smith, as well as former prime minister John Major.
Speaking to Times Radio, Mr Hammond said: “An increase in National Insurance contributions is asking young working people, some of whom will never inherit the property, to subsidise older people who’ve accumulated wealth during their lifetime and have a property, and, on any basis, that has got to be wrong.
“I think if the Government were to go ahead with the proposed increase in national insurance contributions, breaking a manifesto commitment in order to underwrite the care costs of older people with homes, I think that would provoke a very significant backlash. I think it would cause the Government – the Conservative Party – significant damage.”
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