Rishi Sunak new ‘tax bombshell’ will ‘cripple’ millions of Britons – ‘Cancel immediately!’

Research commissioned by the Liberal Democrats said businesses with fewer than 250 employees would be forced to pay an extra £2.4billion a year due to the 1.25 percent rise in national insurance. The national insurance (NI) rise was announced by Boris Johnson in September to cover the cost of social care. House of Commons research has revealed that areas of the UK such as Birmingham, Glasgow, Leeds and areas of London will see businesses pay tens of millions extra in NI costs.

The House of Commons research said that £8billion will be raised from businesses through the National Insurance rise.

Of this amount, 70 percent will come from the largest one percent of businesses, those firms with at least 250 employees.

But Christine Jardine, Liberal Democrat Treasury spokesperson, said: “The Conservatives’ broken manifesto promise will create a tax bombshell for the small businesses that are the backbone of our communities.

“It’s little wonder that voters no longer see the Conservative Party as the party of low tax.

“We have already lost far too many treasured shops from our high streets.

“There are too many businesses are drowning in tax rises and red tape.

“Rishi Sunak must give small businesses the chance to grow again instead of clobbering them with a crippling tax rise.

“The Chancellor is out of touch with small businesses.

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This is despite the Government raising national insurance to pay for social care.

He told BBC One’s The Andrew Marr Show: “Of course, my instincts are to do that, that’s what I believe, I want people to better keep more of their money, I want to reward people for working.

“I think that is a good thing and I think that will help drive economic growth.

“But as we discussed, I’ve also had to grapple with an economic shock, the biggest in 300 years, borrowing that is the highest since World War Two, and things like the elective backlogs in the NHS being at record levels which we want to make progress on.

“Those are some of the challenges.”