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Boris Johnson's Manifesto-breaking tax hike

ended 07. September 2021

Boris Johnson is today expected to break a key Manifesto pledge by raising the National Insurance rate.

We asked small business owners around the UK for their views. They ranged from philosophical to outright enraged.

“Is it any wonder the majority of working people in the UK cannot trust politicians as far as they could throw them?”, asks Kieran Boyle, Managing Director of Gloucester-based CKB Recruitment. 

Debbie Porter of Destination Digital Marketing, was equally unimpressed: "What’s next in line to be broken from the Manifesto? A hike in income tax and VAT, too?".

But Sarah Loates at Derby-based Loates HR Consultancy was slightly more resigned to the inevitability of tax hikes: "The pandemic has meant spending on a leviathan scale, and something we will all inevitably need to atone for through increased taxation."

The views of 12 small business owners are listed below.

10 responses from the Newspage community

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Scott Gallacher
Director at Rowley Turton
"Increasing National Insurance is essentially a tax on jobs. Given the economic challenges we face as we recover from the impact of Covid, and the lockdowns, I think this is the wrong policy at the wrong time. The working population is being asked to pay more today (in increased NI contributions) to provide additional support for those already in retirement. "As shown by increases to the state pension age, the working population cannot be certain that they will receive the same support when they finally reach retirement. Consequently, many younger people who are struggling with student debt and unable to get onto the housing ladder may be incensed that they are being asked to further support the so-called 'golden generation'."
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Kieran Boyle
Managing Director at CKB Recruitment Ltd
"Is it any wonder the majority of working people in the UK cannot trust politicians as far as they could throw them? They regularly break promise after promise, and this is just another kick in the teeth to the millions of people across the country who are already struggling. Shame on you Boris!"
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Ben Crampin
Partner at Optimal Compliance
"Given the recent levels of Government spending on COVID-19 support, it is unsurprising that tax rises are now deemed necessary. In recent years, tax rises have mostly been effected through adjustments to tax thresholds—the points at which various taxes take effect—rather than to headline-grabbing tax rates. So it would mark quite a significant step for the Government to increase the employee National Insurance rate, which has been unchanged at 12% since 2011."
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Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
"Now is not the time to be increasing National Insurance. It is going to be a difficult time for people anyway with the end of furlough, end of the Stamp Duty holiday and high inflation. The last thing we need at the moment is to be paying more tax. And that is what NI is, a tax."
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Debbie Porter
Managing Director at Destination Digital Marketing
"This just goes to show, once again, that this government can say anything it wants to win a vote, safe in the belief that none of any of the words they say means anything binding. "A proposed rise in National Insurance at this time would hit many of the people who’ve been most affected by the pandemic and who are in the least fair position to fund social care. What’s next in line to be broken from the manifesto? A hike in income tax and VAT, too?"
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
"Frankly it's a kick in the teeth. Make the workers and employers actually contributing to society pay that little bit more while not really solving the issue of funding NHS and social care, yet leave the unearned wealth and capital gains of party donors completely alone. I guess we shouldn't expect anything else in Boris' chumocracy."
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Chris Ramsbottom
Owner/director at The Amethyst Centre
"To be honest, I've been amazed that NI contributions are structured in the way they are for years. How is it fair that those who earn the average wage pay pro rata more than someone on £100,000 a year? Surely those most able to pay should pay the most? Come on Boris, grasp this nettle and make things fairer."
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Sarah Loates
Director at Loates HR Consultancy
"As Thanos, a villain of biblical proportions declared in MARVEL Avengers Endgame, "I am inevitable". The pandemic has meant spending on a leviathan scale, with cash leaving the Exchequer faster than Rishi's rise through the Tory ranks. And something we will all inevitably need to atone for through increased taxation."
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Susan Heaton-Wright
Managing Director at SuperStar Communicator
"Johnson never seems to consider things before he speaks. While I do believe there should be reforms for social care, using NI contributions, which are balanced against higher earning individuals, is crazy. A hike of 1% or 2% on income tax would be better."
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James Adkin
Mortgage and Protection Advisor at James Adkin
"As with all potential changes to an individual or company's income or profit, the public will want to know specifics as to where this money will be spent. All too often this does not happen and the public do not see what has resulted from increased tax and spending."