Union Allies Call for Extra Money for Politicians
MPs are facing accusations of hypocrisy as their union allies demand additional funds to offset Labour's tax increases. Chancellor Rachel Reeves recently announced a hike in Employers' National Insurance, prompting calls for more cash for politicians to pay their staff.
Warnings of Potential Closures and Job Losses
The move has sparked concerns from care homes, hospices, and businesses, with fears that the tax hikes could lead to closures and job losses. Companies like Tesco, Marks & Spencer, and Next have already expressed worries about the impact on their operations.
Pressure from Union Unite and Tory Offices
Sources reveal that union Unite is spearheading the push for additional funds for Labour MPs, while Tory offices are lobbying through a staff association called MAPSA. There are calls for a budget uplift to accommodate the increase in Employers' National Insurance.
Taxpayers' Alliance Chief Criticizes MPs' Requests
Taxpayers' Alliance chief John O'Connell criticized the MPs' demands, stating that if politicians are imposing financial constraints on businesses and workers, they should also be prepared to tighten their own budgets. The tax rise on Employers' National Insurance was a significant revenue-raiser in the Chancellor's recent Budget.
Exemption for NHS and Public Sector
While the hike in Employers' National Insurance applies to most sectors, the NHS and the rest of the public sector are exempt from the tax increase. Ipsa, which regulates MP business costs, is expected to consider the NICs hike when reviewing budgets in March.
