Tory warns national insurance hike may not raise a 'single penny' for public services

Senior Tory expresses concerns

A looming national insurance hike, set to take effect next month, has raised concerns among senior Tories. Shadow Chancellor Mel Stride warns that the increased contributions may not generate any revenue for public services as intended by Chancellor Rachel Reeves.

Economic repercussions and potential losses

Experts predict that the £25 billion 'Jobs tax' raid announced in the Budget could have adverse effects on businesses and entrepreneurs, leading to economic damage. Mr. Stride highlights estimates showing a potential loss of £9.6 billion, with additional costs for public sector workers and higher borrowing expenses.

Burden on businesses and workers

Mr. Stride criticizes the tax hike as a burden on both businesses and workers, warning of its detrimental impact on the economy. With concerns about job cuts and hiring freezes looming, the future implications of the national insurance increase remain uncertain.

Call to action

Amidst growing apprehension, Mr. Stride urges Labour to reconsider their approach and cancel the 'Jobs Tax' before it negatively impacts hardworking families and the economy further. The Treasury has been approached for comment on the issue.