The prime minister and chancellor have bolted themselves together in a mutual destruction pact. Come hell or high water, the national insurance rise will happen, rudely snubbing a campaign by the Daily Mail. The Tory right wants no tax rises and no spending, while Labour wants the highest tax burden to be paid by those who have the most. But instead of hitting older people, or the unearned income of rich people, this tax will be paid by young people.
It’s a political shocker: the NI rise will take £255 a year from typical earnings, in perfect synchronicity with the explosion in fuel bills, council tax rises and inflation, which is on track to reach 6% by April. The government has also ruled out abolishing VAT on fuel, another regressive tax. This is an epic case of political and policy mismanagement.
