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'It'll hit the poorest hardest': David Davis fears cost of living crisis after Tory tax hike
4 October 2021, 10:41
Top Conservative MP David Davis admits he "worries" about a cost of living crisis as the Government is set to hike taxes in an "un-Tory" and "confused" move.
It comes after the PM's manifesto-breaking announcement that National Insurance will increase by 1.25% to pay for the health and social care crisis exacerbated by the pandemic.
The PM has said this increase, which is the highest tax rise in 40 years, will be to be paid by employers and workers from March 2022 and raise almost 36 billion pounds over the next three years.
Corporation tax will also be hiked from 19% to 25%.
Former Secretary of State for Exiting the European Union David Davis told LBC he "worries" about the high tax strategy from the Government, which is "both un-Tory and confused."
He suggested that the debt to restore the health service should be taken off the "short term balance sheet", similar to the 100 year war loans.
Speaking from the Conservative Party conference in Manchester, he told Nick Ferrari he is almost "acting as the opposition" to these plans, and many fellow party members he talk to are also unhappy with the regulations and tax hikes.
A high tax environment and inflation is "going to hit the poorest hardest and you may end up with a cost of living crisis," Mr Davis said.
"At the moment the public Boris, he's a great character, he's fun, he's optimistic, he's a solution to all the misery guts, but if you can't afford to get through the week...that's when it starts to bite. That's when it starts to hurt.
"I do worry about that."
The 1.25% health and social care levy will be introduced in April 2022, based on a rise in National Insurance, the Prime Minister announced.
From 2023, working age adults over state pension age will also contribute 1.25%."If you earn more you pay more," said the Prime Minister.
So if you earn £24,100 you will contribute £180 a year. If you earn £67,100 you will contribute £715 a year.
The highest earning 14% will pay around half of the revenues.It means from April, the average worker will have around 20 pounds less in their monthly pay.