Labour challenges Sunak to explain how £46bn plan to axe national insurance would be funded – UK politics live

1 month ago 24

PM to face questions on strategic thinking in government, economy and public services, and global issues from Commons Liaison committee

Good morning. The Commons rises for the Easter recess at the end of today, but before that happens Rishi Sunak has meetings with two of Westminster’s more high-profile bodies: cabinet, and the Commons liaison committee. Cabinet is no threat to Sunak, because the Tory MPs working hardest to force him out of of his job are on the backbenchers (which was not always the case with this predecessors. In theory the liasion committee – best thought of as 35 MPs who think they should be in cabinet – ought to pose more of a threat, and the 90-minute session at lunchtime is the best news prospect of the day. But this liaison committee is less ferocious than it has been in previous parliaments, and Sunak normally gets through it without being seriously rattled.

Sunak has been told that today’s hearing will include questioning on three topics – scrutiny of strategic thinking in government, economy and public services, and global issues – which in practice could mean more or less anything.

The chancellor told Conservative party members he plans to scrap national insurance in the next parliament. How does the government plan to pay for this projected cost of £46bn?

[Sunak has] committed his party to a £46bn [tax cut] which either means more borrowing, putting up mortgages, or it means a new tax rise on pensioners. Or it severs the link between contribution and the state pension, it is threatens the state pension in the future. Silver Voices, an organisation who campaigns for pensioners, in the Daily Express a couple of weeks ago said this could mean to the means testing of the state pension. Rishi Sunak has got to answer questions on his £46bn bombshell.

Silver Voices director Dennis Reed said that although state pensions are not reliant on the amount of NICs collected by the government, abolishing it could lead to problems.

He said: “When national insurance was set up, it was intended to fund the state pension and benefits.

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