MPs and commentators have been arguing this morning over whether a rise in employer NICs would constitute a violation of Labour’s manifesto pledge, which stated:
“The Conservatives have raised the tax burden to a 70-year high. We will ensure taxes on working people are kept as low as possible. Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.”
The IFS considers that a hike would be a “straightforward breach” of the commitment. Tax expert and Labour activist Dan Neidle has pointed out that all employer NIC costs are transferred to employees. Labour’s defence operation has launched on the Tories’ asking for clarification from Labour on whether employer NICs would rise – an election press release issued post-manifesto. The implication being that the manifesto did not rule it out…
Labour MP and “rising star” Dan Tomlinson clarified on Politics Live just now that a hike would constitute a new tax on “working people” because someone who owns and runs a business is obviously a “working person.” The point decimates Labour’s defence as its pledge on “working people” was cast-iron. Was Starmer’s tool factory-owning Dad not a working person?