Boris Johnson remained locked in talks about funding social reforms when Tory Grandees warned that raising national insurance would unfairly hit young and lower-income workers.
Former Chancellor Lord Hammond told the Prime Minister there will be a “very significant backlash” if he continues manifest-breaking this week as expected.
Mr Johnson, Health Minister Sajid Javid and Chancellor Rishi Sunak discussed the details as the government prepares to announce its long-awaited welfare reforms.
An additional $ 5.5 billion was reportedly raised during this year.
However, Downing Street sources said that details of the social plans were still being worked out on Sunday night and that a day for the announcement had yet to be confirmed.
The Sunday Times reported that lifelong care contributions will be capped at around £ 80,000 and national insurance will be increased by 1.25% to raise between £ 10 billion and £ 11 billion a year.
Lord Hammond told Times Radio, “I think if the government proceeded with the proposed increase in social security contributions and broke a manifest commitment to cover the cost of care for the elderly, I think it would cause very large harm Setback. “
The Tory peer, who was Chancellor between 2016 and 2019, also said he would vote “against” in the House of Lords if the opportunity arises.
“Economically and politically it is wrong to develop the state further to protect private wealth by asking poor people to subsidize rich people,” he said.
Lord Clarke, the Conservative Chancellor between 1993 and 1997, said there were “national insurance issues” that should be addressed while addressing them.
He told LBC Radio that it was “too heavily weighted on the low-wage earners” and that there was “no reason” why people who continued to work after the statutory retirement age no longer paid it.
Conservative former Prime Minister Sir John Major warned against the move aimed at workers and employers, arguing that it was “regressive”.
Instead, he urged Mr. Johnson to take the “straightforward and honest” approach of increasing general taxation.
Ministers have also privately acknowledged their opposition to the proposal, while House of Commons Chairman Jacob Rees-Mogg appeared to show his disapproval in his “Weekly Wisdom” column on the Sunday Express.
He cited George Bush Sr.’s promise not to raise any new taxes if he successfully ran for president until he raised taxes and lost the next election to Bill Clinton.
Mr. Rees-Mogg added, “Voters remembered those words after President Bush forgot them.”
But ministerial resistance could be dampened by speculation about an imminent cabinet reshuffle.
And a second election promise could be broken in quick succession, with ministers reportedly preparing to announce that the triple lock on the state pension will be temporarily replaced with a “double lock”.
This is because wage distortions during the coronavirus crisis could result in retirees receiving a raise of up to 8%, while workers face tighter times.
Any tax increase would be in violation of the 2019 Tory Manifesto, which contained a personal “guarantee” from Mr. Johnson not to increase income tax, sales tax, or social security.
Labor has spoken out against an increase in social security, but leader Sir Keir Starmer will come under pressure to outline how he would fund welfare reforms.
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