Gove insists Tory tax increase will go ahead in April despite growing cost of living crisis

Michael Gove says the Government will not ‘ignore’ the National Insurance increase despite Labor warning that Britons face ‘worst pressure’ on living standards in years

Tory ministers will push for the planned tax increase despite the escalating cost of living crisis, says Michael Gove.

The Minister for Promotions said the Government would not “ignore” the shock National Insurance increase in the manifesto that would start happening to Britain within weeks.

From 1 April workers, employers and self-employed workers will pay an extra £1.25p on National Insurance contributions – between 12% and 13.25% – as a part of efforts to cut the Covid backlog in the NHS and social care.

A worker earning £20,000 a year will have to pay £89 more in tax, while someone earning £50,000 will pay £464 more.

The price hikes come as energy bills, rail fares, council tax and inflation are all on the rise, while income tax and childcare support thresholds are frozen and tests Free Covid is set to be cancelled.

Rishi Sunak is facing calls from all sides to do more to help the British in his upcoming Spring Declaration, as the war in Ukraine increases fuel prices.

Prime Minister Rishi Sunak is under pressure to ease the cost of living pressure on families



But the Prime Minister is understood to be refusing to make any major announcements about energy bills in the upcoming Small Budget given the volatile situation.

One source said Mr Sunak will likely wait until near the next price cap review in October before making a decision.

He has announced a £150 council tax rebate for people living in the AD band and a £200 rebate on energy bills, to be paid in monthly installments.

Asked if the Government was going to cut taxes for people, Mr Gove told the BBC’s Sunday Morning programme: “No, what we have to do now is support in any way we can. .

“We’ve cut taxes by cutting council tax for lower earners, we’re doing it on purpose to target lower income earners at a time when we know that they face considerable pressure.

“But behind your question might be a hint that we should get rid of the national insurance increase. No, we don’t.

“We need an increase in national coverage to make sure we can fund the NHS and social care to tackle the Covid backlog.”

Promotion Secretary Michael Gove


NurPhoto / PA images)

Britons are facing “the worst pressure” on their standard of living in years, Labor warned.

Shadow Business Secretary Jonathan Reynolds said: “I cannot give you a historical parallel to the kind of strangulation that the British public has been suffering from.

“The first thing to say is that I think it’s clear what’s happening in Ukraine that the pressure is on, but we had a crisis before this started.”

Mr Reynolds said a “much stronger response from the Chancellor” was needed in the spring statement beyond a “buy now pay later” scheme to reduce council tax contributions.

Our team of Cost of Living experts are here to help YOU get through a very difficult year.

They will bring you the latest money news stories and also provide expert advice.

Whether it’s rising energy bills, weekly shopping costs or rising taxes, our team is there for you.

Every Thursday at 1 p.m. they’ll join a Facebook Live event to answer your questions and offer their advice. Visit to watch. You can read more about our team of experts here.

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Boris Johnson is reportedly considering a trip to Saudi Arabia to push for action to keep oil prices down as the West battles to phase out Russian oil and gas.

Meanwhile, Mr Sunak urged businesses to “think very carefully” about any investment in Russia and said the UK must “go further together in our mission of inflicting pain”. maximum” for Vladimir Putin.

A series of major British companies including BP, Shell and Centrica have announced plans to cut ties with Russia due to the war in Ukraine.

“I welcome a number of companies that have committed to divest from Russian assets – and I want to make it clear that the government supports further signals of intent,” Mr. Sunak said in a statement on Sunday.

“I urge companies to think very carefully about their investments in Russia and how they can support the Putin regime – and it is also clear to me that there are no new investment cases in Russia.

“Together we must go further in our mission to inflict maximum economic pain – and prevent further bloodshed.”

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