Boris Johnson heads for furious £12bn showdown – PM to take on Tory tax rebels | Politics | News

A Number 10 spokesperson said: ‘We are committed to introducing this [tax rise] in April.” But a backbench revolt against the increase was escalating last night.
A senior Tory MP has called on the Prime Minister and Chancellor to urgently consider a windfall tax on energy companies and massive cuts to the overseas aid budget as an alternative way to raise billions for the NHS and the social protection system.
Former minister Robert Halfon said: “People across the country care about feeding and clothing their families. Steps must be taken to support the most vulnerable in our communities.
His plea came as a forecast yesterday estimated that oil giants Shell and BP made £7billion in profits between them while motorists face near-record prices at petrol pumps.
The Tory divide over the proposed 1¼% hike in National Insurance contributions widened yesterday as Downing Street and Treasury officials tried to end doubts over whether the move will go ahead as planned.
Speculation grew after Mr Johnson appeared unwilling to publicly confirm the policy was going ahead and officials only said there were ‘no plans’ for a delay or cancellation of the hike taxes.
In a clear hardening of the Government’s stance, a spokesman for the Prime Minister yesterday vigorously rejected suggestions from Tory backbenchers that Mr Johnson had ‘become wavering’ on policy.
“The Prime Minister and Chancellor are fully committed to introducing the Health and Social Care Levy in April,” the spokesperson said.
“We have already explained why we are doing this, in order to give the NHS the funds it needs to tackle the backlog that has built up, as well as to tackle the long-term problem of social care. So, as I said, we are committed to introducing this in April.
Asked to ensure there was no reversal on the policy, the spokesman said: “As I said, we are introducing it in April.”
He said ultimately the public would support the aims of increased National Insurance to raise funds to tackle the NHS treatment backlog left by the covid pandemic and fix the system social protection for adults.
“Of course, we understand that people may not want to pay more tax.
“But we have set out the reasons for this and I think it is clear that one of the public’s number one priorities is to support the NHS and help the NHS,” the spokesperson said.
When asked if the uptick was “no ifs, no buts,” the spokesperson replied, “Yeah.”
Treasury insiders have insisted Chancellor Rishi Sunak and the prime minister are united on the issue, denying speculation the pair discussed delaying or easing the tax hike.
A source close to the Chancellor said: “There has been no discussion of a delay or cancellation. The position has been the same throughout.
Conservative frontbencher Chris Philp also insisted the rally continued yesterday.
The Parliamentary Under-Secretary in the Department of Culture and Media said: “Yes, it is moving forward.
“It has been approved by the full Cabinet, it has been passed by Parliament by a significant majority, and the money is needed to fund the NHS, which I believe is a national priority.
“This is £36billion over three years to fund the NHS and social care.
“We need to invest this money to ensure the NHS has the resources it needs to recover from the pandemic, and this is a proportionate way to find this money.”
But Mr Halfon, chairman of the Commons Education Committee, insisted the rising cost of living should force the government to rethink the tax hike.
He said: “We are going to have a cost of living crisis next year. It’s not just about suddenly magically disappearing.
“People are struggling right now because of everything that’s happened with Covid, because of the energy bills.
“If we borrow, we only defer taxation.
“What I think the government should do is look again and see how to raise that £12billion, and whether or not it is possible to have windfall corporate profits taxes, eventually. to raise capital gains tax, to raise the funds that are needed, but we need a flat rate based on the cost of living in general.
“I’d like to see the £4billion they’ve saved from cutting overseas aid, to use it to cut taxes on the lowest paid as well, and also to do something about the green levies which we know represent around 25% of our energy bills.
“If they introduced a downward green escalator because the international price of energy is so high, it could make a huge difference to people’s energy bills because they will go up by several hundred pounds from then on. ‘April.”
Shell is expected to announce its quarterly results next Thursday.
Analysts expect the company to reveal profits of nearly £4.3billion, or just over £32,000 an hour, the same as an average NHS nurse win in a year.
BP follows on Feb. 8, with analysts predicting it earned nearly £3bn in the last three months of last year.