Mogg: the Point of Cabinet is to Disagree

Commenting more candidly on reports that he voiced opposition to the National Insurance rise in Cabinet last week, Jacob Rees-Mogg has told the Moggcast that while upholding collective responsibility, “it must be right that ministers can, in cabinet, discuss the important issues of the day”:

“And that the whole point of Cabinet is that it disagrees, and then comes to a conclusion that everyone is bound by. If we just turned up like a lot of nodding dolls or whatever they are and agreed with whatever was put in front of us what would be the point of it? It becomes a completely formulaic symbolic opperation” 

Asked if he’d resign over opposition to the National Insurance rise, Jacob flatly said “I’m fully supportive of the Prime Minister”. Hmm…

mdi-timer 11 January 2022 @ 10:29 11 Jan 2022 @ 10:29 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Tory MPs’ National Insurance Rebellion Continues

Nine rebel Tory MPs have signed an amendment to the Health and Social Care Levy, which if passed would exempt people from having to pay the social care levy if they took out their own care insurance.

Interestingly a number of the signed-up rebels merely abstained on the second vote last week.

Fysh told the Independent that the amendment will give ministers the option of using some or all of the money raised by the levy to encourage the publish to invest in insurance:

“The amendment would allow us to start having the conversation about what the best system is for the future… it would mean that if future ministers want to create incentives for investment into some kind of modern insurance scheme, officials wouldn’t be able to tell them that the law bars them from doing that.”

Seems like a good idea. While we wait to see how the vote pans out, Guido took to mocking up what Boris would have worn if he’d joined AOC on the red carpet last night…

mdi-timer 14 September 2021 @ 12:52 14 Sep 2021 @ 12:52 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Kwasi Kwarteng Tight-Lipped Over How NHS Pay Rise will Be Funded

With the government announcing that NHS staff will receive a 3% pay rise this year at a cost of around £1.5 billion, questions are inevitably being raised over how the government plans to pay for it. Considering then-Health Secretary Matt Hancock said the previously planned 1% rise was “what we think is affordable”, there’s clearly some explaining to do…

This morning The Times claims it’s likely to come from a rise in national insurance that was initially intended to fund the elusive new social care plan (albeit dressed up as “a new health and social care tax”, rather than just a manifesto-busting national insurance hike). Yet when asked about this by host Kay Burley on Sky News today, Business Secretary Kwasi Kwarteng kept mum:

“We’re going to pay for it through general taxation, as we pay for everything…I don’t see how we could increase national insurance, but you know, things have been very flexible over the last eighteen months. We’ve lived through an unprecedented time, we’ve spent a huge amount of money that we never thought was possible.”

It’s a running theme of this week for ministers to dodge these kind of questions…

mdi-timer 22 July 2021 @ 08:50 22 Jul 2021 @ 08:50 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Government’s Manifesto-Breaking Social Care Tax Rise Would Hit Young People Hardest

Under a conservative majority government, the rates of tax and the three biggest taxes – national insurance, income tax and VAT – will not rise and they can be absolutely certain of that” – so said Sajid Javid, then chancellor, during the 2019 election campaign. Imagine Guido’s surprise last night to see multiple papers reporting new plans to raise National Insurance by at least 1% to raise at least £7 billion for social care. A tax you stop paying at State Pension age…

Speculation that the idea of an extra 2-3p on tax for the over forties has been abandoned means, once again, young people will be clobbered to ensure that granny and grandad don’t have to sell their valuable assets to fund care in later life. The news comes shortly after it was pointed out oldies could be about to enjoy an 8% rise in their pensions thanks to the triple lock, though there’s still hope Rishi might see sense and prevent that from happening. Is No. 10 determined to see just how low the Tories’ share of the youth vote can go?

John Macdonald, the ASI’s head of government affairs, tells Guido the hike would be a betrayal of millions of Tory voters

It is an unfair attack on younger, hard working Brits. Hiking taxes will prolong Covid economic suffering by destroying jobs and crushing businesses — which could ultimately mean less tax revenue for public services.

Throwing money at social care will do little to solve the fundamental, structural issues. We need more private sector investment and a new model of insurance, not throwing fuel on a dumpster fire.”

As Macdonald points out, the state has grown large enough over the last two years; “If anything, a Conservative Government should be trying to abolish national insurance to allow people to keep more of their earnings and speed up the post-Covid recovery”. Hopefully Boris will see sense and perform one of his increasingly frequent pirouetting u-turns…

mdi-timer 20 July 2021 @ 10:32 20 Jul 2021 @ 10:32 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Boris Accidentally Announces Huge National Insurance Cut

Speaking to factory workers in Teesside, Boris accidentally let slip a Tory a major manifesto announcement that the Tories will increase the National Insurance threshold to £12,500 if they win the election. Finally, the Tories give us all a tax cut…

The policy clearly hadn’t meant to be blurted out, as subsequently his TV interviews had to be delayed while his team worked out how to address the self-exposed leak.

Guido hears the specifics of the policy will involve an immediate NI threshold raise to £9,500 next year, with the aim of £12,500 in the longer term – approximately a £400 tax cut for every worker. In simple terms that means some £3 billion staying in the pockets of millions of over-taxed voters in 2020…

mdi-timer 20 November 2019 @ 14:38 20 Nov 2019 @ 14:38 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Rory Stewart Hit with NICs U-Turn on Live TV

Poor old Rory Stewart spent five minutes defending the National Insurance rise on the Daily Politics, before being informed live on air that Hammond had just u-turned. It is difficult to overestimate the anger among Tory MPs sent out to defend the rise. As James Cleverly told Hammond at the 1922 last week, MPs were prepared to go out and defend the policy so long as the government didn’t u-turn and make them look like fools. Now they have done exactly that…

UPDATE: Vaizey not happy:

mdi-timer 15 March 2017 @ 13:17 15 Mar 2017 @ 13:17 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
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