Lib Dems table amendment to reduce Sunak’s £2.1bn tax raid by increasing NI threshold rise now

  • Chancellor’s decision to delay NI threshold changes until July to cost workers extra £2.1 billion this year.
  • Lib Dem amendment would bring forward the changes to April 6th, saving a typical worker £80.
  • Lib Dems warn that “every day of delay will cause more pain for families on the brink.”

The Liberal Democrats have tabled an amendment to bring forward the rise in the National Insurance threshold to April 6th, helping to minimise the impact of Rishi Sunak’s tax rises on millions of families. It comes as MPs debate the Bill to increase the National Insurance threshold today in Parliament.

The Conservatives’ manifesto-breaking rise to National Insurance will come into force on April 6th, hitting families with a tax rise of around £360 just as energy bills go up over 50%. Meanwhile, the Chancellor’s announcement he will be increasing the threshold people start paying National Insurance won’t take effect until July 6th.

It means that for three months, families will feel the full force of Rishi Sunak’s tax hike without any cushioning from the raising of the National Insurance threshold. According to analysis by the Liberal Democrats, this delay will mean families face an extra tax hit of £2.1 billion, compared to if the threshold was increased immediately.

The Liberal Democrat amendment would save the typical worker £80, helping to cushion the blow of Conservative tax rises.

Liberal Democrat Chief Whip Wendy Chamberlain MP, who tabled the amendment, said: “This Spring Statement has been shown up as one great scam. Rishi Sunak is hammering the British people with unfair tax rises, while dishonestly claiming it is a tax cut.

Wendy Chamberlain

“Even the small crumbs Sunak is offering are being delayed by another three months, meaning families face the full force of Sunak’s tax rises just as energy bills go through the roof.

“The Chancellor must offer people the help they need now, by raising the national insurance threshold immediately or simply scrapping his tax rise altogether. Every day of delay will cause more pain for families on the brink.”

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