Jeremy Hunt criticizes Labour's 'scaremongering' over National Insurance plan

Chancellor confirms National Insurance will not be axed in next Parliament

Jeremy Hunt has accused Labour of spreading fear as he revealed that National Insurance will not be scrapped in the next Parliament. The Chancellor had initially expressed a desire to eliminate the tax when he announced a 2p reduction in NI contributions during the Budget.

'Long-term ambition' for tax simplification

Mr. Hunt clarified, "It won’t happen in one Parliament, but it is a long-term ambition." He emphasized that abolishing National Insurance would lead to significant tax simplification. He dismissed Labour's concerns, stating that NIC receipts do not directly impact the NHS budget or pensions.

Looming financial implications

Labour estimated that scrapping NI would incur a cost of £46 billion and pose a threat to state pensions. They labeled the policy as "unfunded" and warned that funding cuts to pensions or healthcare would result in increased borrowing or taxes.

Labour's comparison to previous fiscal strategies

Referring to Liz Truss' unsuccessful mini-Budget, Sir Keir Starmer cautioned that history might repeat itself, stating, "It could be 2022 all over again." He criticized previous attempts to implement similar measures under the previous administration, suggesting that the consequences were borne by the general public.